Canfor Pulp Products Inc. Announces 2020 and Fourth Quarter 2020 Results

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VANCOUVER, BC, Feb. 24, 2021 - Canfor Pulp Products Inc. ("CPPI") (TSX: CFX) today reported 2020 and fourth quarter 2020 results:

Overview

  • 2020 reported operating loss of $56 million; net loss of $22 million, or $0.34 per share
  • Fourth quarter of 2020 reported operating loss of $28 million; net loss of $10 million, or $0.16 per share
  • Strong balance sheet maintained, net debt to capitalization of 7.5% at December 31, 2020

2020 was a turbulent year for Canfor Pulp and its employees with the coronavirus outbreak ("COVID-19") taking a heavy toll on global pulp markets as well as supply channels. The Company responded decisively to an unprecedented number of challenges, moving quickly to adopt new safety protocols, take significant fibre-related production curtailments and defer scheduled major maintenance outages. The year also saw a major rebuild of the lower furnace of the number five recovery boiler ("RB5") at the Company's Northwood Northern Bleached Softwood Kraft ("NBSK") pulp mill ("Northwood") to ensure the safe and reliable operation of that boiler, which significantly reduced production volumes in the fourth quarter. On a positive note, the Company ended the year with a strong balance sheet and healthy inventory levels and, with the RB5 rebuild now completed, is well placed to capitalize on an increasingly positive market outlook for 2021.

The COVID-19 related disruptions and capital-related downtime weighed on Canfor Pulp's financial results for 2020, with the Company reporting an operating loss of $56.1 million and a net loss of $0.34 per share, compared to an operating loss of $31.0 million and net loss of $0.47 per share for the year ended December 31, 2019.

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Source: Canfor Pulp