VANCOUVER, BC, May 1, 2024 - Canfor Pulp Products Inc. ("The Company" or "CPPI") (TSX: CFX) today reported its first quarter of 2024 results:
Overview
- Q1 2024 operating loss of $16 million; net loss of $2 million, or $0.04 per share
- Modest uptick in NBSK pulp unit sales realizations, despite relatively subdued global pulp demand and flat producer inventory levels
- 7% increase in pulp production quarter-over-quarter reflecting solid operational performance and reduced unplanned downtime
- Persistent challenges associated with the availability of economic fibre in British Columbia in the near-term and through the balance of 2024
The Company reported an operating loss of $15.7 million for the first quarter of 2024, compared to an operating loss of $15.1 million for the fourth quarter of 2023. After adjusting for certain one-time items, including a $10.9 million reversal of a previously recognized inventory write-down in the prior period, the Company's operating results for the first quarter of 2024 reflected a $10.3 million improvement compared to an adjusted operating loss of $26.0 million for the fourth quarter of 2023. These results were largely driven by a modest uplift in the Company's average Northern Bleached Softwood Kraft ("NBSK") sales unit pulp realizations in the current quarter combined with a 7% increase in pulp production compared to the fourth quarter of 2023.
Commenting on the Company's first quarter of 2024 results, CPPI's President and Chief Executive Officer, Kevin Edgson, said, "This was an improved quarter for Canfor Pulp, as we benefited from generally steady global softwood pulp market conditions and solid pulp production at both NBSK mills. While we continue to navigate the external challenges facing our business in relation to the availability of economically viable fibre, both in the short and longer term, we greatly appreciate our employees' continued focus on enhancing our operational performance and efficiency."
Source: Canfor Pulp
