GreenFirst Forest Products Posted Robust Q2 Results

SEATTLE (Scrap Monster): GreenFirst Forest Products Inc. announced strong results for the second quarter of 2022.

The Q2 net earnings were $29.5 million or $0.15 per diluted share, compared to $34.0 million or $ 0.18 per share in the first quarter of the year. The Q2 adjusted EBITDA surged higher by 21% to $54.3 million, compared with $44.9 million reported during the prior quarter. The basic earnings per share dropped from $0.19 to $0.17 quarter-on-quarter.

GreenFirst reported net sales of $214.6 million during Q2 2022, higher by 21% compared to Q1 this year. The higher sales were primarily on account of higher sales volume of lumber and paper.

The company reported cost of sales of $139.1 million during Q2 2022, significantly higher by 26% compared to the prior quarter. As at the end of the second quarter, the company reported a total liquidity of $125.4 million.

Commenting on its outlook, the company noted that COVID-19 and disruptions to transportation continue to remain a concern through the remainder of 2022. It expects continued volatility in lumber prices. The price levels will be pressured by anticipated further interest rate hikes expected in 2022.

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