VANCOUVER, BC, July 28, 2022 - Canfor Pulp Products Inc. ("The Company" or "CPPI") (TSX: CFX) today reported its second quarter of 2022 results:
- Q2 2022 reported operating loss of $8 million; net loss of $6 million, or $0.09 per share
- Strong global pulp fundamentals and near-record high global US-dollar pulp list prices in Q2; significant improvement in NBSK pulp unit sales realizations
- Increased pulp shipments reflecting slight transportation relief despite ongoing logistics constraints
- Available liquidity of $106 million at June 30, 2022
The following table summarizes selected financial information for CPPI for the comparative periods:
1 Adjusted results referenced throughout this news release are defined as non-IFRS financial measures. For further details, refer to the "Non-IFRS Financial Measures" section of this document
The Company reported an operating loss of $8.1 million for the second quarter of 2022, compared to an operating loss of $26.0 million for the first quarter of 2022, in large part reflecting materially higher Northern Bleached Softwood Kraft ("NBSK") pulp unit sales realizations, and to a lesser extent, a 16% uplift in pulp shipments, as transportation disruptions globally and in British Columbia ("BC") eased somewhat in the latter part of the current quarter. These factors more than offset the impact of market-related fibre cost increases and inflation-driven cash conversion cost pressures in the current period.
Pulp production was up 6% from the previous quarter, as NBSK productivity in the current quarter was maximized to available transportation. Concurrently, logistics-related downtime at the Company's Taylor Bleached Chemi-Thermo Mechanical Pulp ("BCTMP") mill ("Taylor"), which commenced in the first quarter of 2022 and continued throughout the second quarter, reduced production by approximately 60,000 tonnes. In addition, NBSK pulp production in the current period included the completion in mid-April of the Company's Northwood NBSK pulp mill's ("Northwood") recovery boiler number one ("RB1") capital upgrade (approximately 10,000 tonnes) as well as a scheduled maintenance outage at Northwood which commenced in June and was completed mid-July (approximately 30,000 tonnes in the second quarter and a further 16,000 tonnes in July).
Commenting on the Company's second quarter's results, CPPI's President and Chief Executive Officer, Kevin Edgson, said, "This was an improved quarter for Canfor Pulp, as we focused on optimizing our operational performance under a constrained logistics situation. Some relief in transportation networks towards the end of the quarter, however, enhanced our ability to realize near-record high NBSK pulp list prices. Throughout the quarter, CPPI's leadership team has continued to make solid progress on the comprehensive business review for the Company and will continue to advance these efforts in the coming months. While we continue to actively monitor the ongoing transportation situation in BC, our immediate focus remains on getting our production performance back on track while preserving our solid balance sheet."
Source: Canfor Pulp
Legal Notice: Paper Advance is not responsible for the accuracy or availability of content on external websites.