VANCOUVER, British Columbia, Nov. 07, 2023 - Western Forest Products Inc. (TSX: WEF) (“Western” or the “Company”) reported a net loss of $17.4 million in the third quarter of 2023, as compared to a net loss of $20.7 million in the second quarter of 2023, and net income of $6.6 million in the third quarter of 2022.
Results in the third quarter of 2023 reflect more challenging macroeconomic conditions, resulting in lower product prices and reduced demand compared to the same period last year. We curtailed certain sawmill operations during the third quarter of 2023, to manage inventories and match production to product demand.
Adjusted EBITDA was negative $11.6 million in the third quarter of 2023, as compared to Adjusted EBITDA of negative $12.0 million in the second quarter of 2023, and adjusted EBITDA of $17.3 million in the third quarter of 2022.
Operating loss prior to restructuring and other items was $25.8 million in third quarter of 2023, as compared to income of $4.7 million in the third quarter of 2022.
Highlights:
- Announced a $35.9 million agreement to sell a 34% interest in a newly formed forestry Limited Partnership to four Vancouver Island First Nations
- Celebrated one year anniversary of glulam business asset acquisition from Calvert Company, Inc. with operations accretive to EBITDA in that year
- Completed installation of machine stress rated lumber grader to support increased product value and mass timber market growth
- Recognized an export tax recovery of $4.3 million on finalization of the softwood lumber duty rate
Commenting on the quarter, Western’s President and CEO Steven Hofer said, “While our results in the quarter reflect the continued challenging operating environment and cost structure in our British Columbia operations, we are encouraged by the progress we’ve made in repositioning our business for the future. The agreement announced with the Tlowitsis, We Wai Kai, Wei Wai Kum and K’ómoks First Nations is a significant step forward. This partnership will provide a collaborative forest stewardship and business model that is key to the operational stability in Coastal BC that we need to support reinvestment, and we are excited to move it forward.”
Source: Western Forest Products
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