“Our 2022 fourth quarter results reflect depressed pricing and lower production from market-driven downtime across our operating platform,” said Western President and CEO Steven Hofer.
“We are cautiously optimistic that improved seasonal demand for our specialty building products in North America and Japan will support improved pricing during the first half of 2023. Continued investment in equipment and technology to produce higher-value products and improve operating efficiency remains a focus, with the completion of capital upgrades to the Company’s Duke Point planer facility demonstrating progress on the quarter.”
VANCOUVER, British Columbia, Feb. 16, 2023 -- Western Forest Products Inc. (TSX: WEF) (“Western” or the “Company”) reported a net loss of $21.4 million and adjusted EBITDA of negative $11.9 million in the fourth quarter of 2022. Results reflect compressed margins on lower log and lumber production and shipments and $11.8 million of inventory provisions.
Net loss in the fourth quarter of 2022 was $21.4 million ($0.07 per diluted share) as compared to net income of $6.6 million ($0.02 per diluted share) for the third quarter of 2022, and net income of $28.5 million ($0.08 per diluted share) in the fourth quarter of 2021.
Highlights:
- Successfully integrated the recently acquired Calvert assets into WFP Engineered Products LLC
- Released the Company’s latest Sustainability Report, expanded to include full scope emissions data
- Released the Company’s first Carbon Accounting Report detailing Western’s 100-year forecast lifecycle carbon assessment methodology, assumptions and results with third party limited assurance on our carbon accounting modelling
- Returned $6.9 million to shareholders through dividends and share buybacks
- Maintained liquidity of $249.8 million to support growth strategy and balanced capital allocation
Western’s fourth quarter adjusted EBITDA was negative $11.9 million, as compared to adjusted EBITDA of $17.3 million in the third quarter of 2022, and adjusted EBITDA of $52.5 million in the fourth quarter of 2021. Operating loss prior to restructuring and other items was $23.6 million, compared to income of $4.7 million in the third quarter of 2022, and $39.4 million of income reported in the fourth quarter of 2021.
Source: Western Forest Products
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