CHILE - Arauco, one of the largest global wooden panel manufacturer, reported sales revenues of USD 1,202.9 million during the third quarter of 2020 (3Q-2020), a 14.6% increase compared to the USD 1,049.9 million obtained during the second quarter of 2020 and a 13.3% fall compared to the third quarter of 2019 (3Q-2019: USD 1,387.2 million).

Adjusted EBITDA reached USD 290.7 million, a 41.3% or USD 84.9 million increase compared to the USD 205.8 million obtained during the second quarter of 2020, and a 22.1% or USD 52.5 million increase compared to the same period of 2019 (3Q-2019: USD 238.2 million).

Arauco’s net income was USD 36.0 million in the 3Q-2020, an increase equivalent to USD 92.0 million, compared to the USD 55.9 million loss obtained during the second quarter of 2020 mainly explained by a significant increase in revenues of the wood products segment. And a USD 65.6 million increase compared to the third quarter of 2019 (3Q-2019: USD -29.6 million).

On May 19, 2020, Arauco’s Shareholders’ Meeting approved the proposal of the Board of Directors to increase the capital of Arauco, up to a maximum amount of USD 700 million. Of the total amount approved, USD 250 million were paid during September 2020, while the remaining USD 450 million could be paid during the course of 2021, depending on the resources required in that year.

The capital increase would aim to strengthen Arauco’s financial position which has been affected by ongoing and past projects, trade tensions between China and the US, and the decrease in the demand of products that has been observed worldwide as a result of the COVID-19 pandemic.