Canfor Pulp Results Impacted by Weak Market and Adverse Weather

SEATTLE (Scrap Monster): Canfor Pulp Products Inc. reported results for the fourth quarter and full-year 2021.

For the quarter, the company reported operating loss of $137.2 million upon sales of $249.3 million. The company reported net loss of $101.1 million or $1.55 per share. The Q4 2021 adjusted net loss stood at $31.7 million or $0.49 per share.

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The loss during the quarter reflected weaker global pulp market conditions and impacts of severe weather conditions on its operations and shipments. The downtime at Northwood NBSK pulp mill also contributed to the loss. The pulp shipments during Q4 2021 totalled 216,000 tonnes, significantly lower from the prior quarter by nearly 10%.

During the full-year 2021, the company’s sales amounted to $1.145 billion. The reported operating loss for the year was $65.5 million. The company reported net loss of $44.4 million and adjusted net income of $25 million for the year. As on 31^st December, 2021, the company’s available liquidity stands at $170 million.

Looking forward, the Q1 2022 results are likely to be impacted by the effects of the RB1 capital-related outage at Northwood into late-March as well as higher pulp unit manufacturing costs. No major maintenance outages are planned for the initial quarter. However, a maintenance outage is currently planned at Northwood and Taylor in Q2 and another at the Intercontinental NBSK pulp mill in Q3 2022.