Canfor Pulp Products reported an operating loss of $25.2 million for the Q1 2023, compared to an operating loss of $91.1 million for the Q4 2022. After adjusting for certain one-time items, including a $3.6 million inventory write-down in the current period, the Company’s operating loss was $21.6 million for the Q1 2023, a $20.4 million improvement compared to an adjusted operating loss of $42.0 million for the Q4 2022. These results, for the most part, reflected a 13% increase in pulp production and an associated decline in pulp unit manufacturing costs quarter-over-quarter.
Commenting on the Company’s Q1 2023 results, Canfor Pulp Products’ President and CEO, Kevin Edgson, said, “This was a difficult quarter for the Company as the decision to shut down the pulp line at the Prince George Pulp and Paper mill weighed heavily on our employees, their families and the local community. Despite this challenging news, the results from our pulp business improved during the quarter as we focused on improving our operational reliability and productivity within the constrained fibre environment we are navigating. With a smooth and efficient wind down of the pulp line at Prince George now complete, our focus remains on continuing to improve our overall performance and preserving our balance sheet.”
Looking forward, global softwood kraft pulp markets are anticipated to continue to weaken through the Q2 2023, as relatively stable demand is projected to be overshadowed by above-average global pulp producer inventory levels. Results in the Q2 2023 are also forecast to reflect the impact on pulp production and shipments of the closure of the Company’s pulp line at the Prince George Pulp and Paper mill. No major maintenance outages are planned for the Q2 2023. Bleached kraft paper markets are projected to weaken somewhat through the Q2 2023 with a modest slowdown in demand anticipated as global kraft paper inventories return to more normalized levels. A maintenance outage is currently planned at the Company’s paper machine in the Q2 2023 with a projected 5,000 tonnes of reduced paper production.
Canfor Pulp Products Inc. is a leading global supplier of pulp and paper products with operations in the central interior of British Columbia, Canada.
