Canfor Pulp Products Inc. reports 3Q 2022 of $308.3 million, compared to $ 298.9 million in the 3Q 2021. The Company reported operating income of $19.2 million for the 3Q 2022, up $27.3 million from an operating loss of $8.1 million reported for the 2Q 2022, in large part reflecting materially higher Northern Bleached Softwood Kraft (“NBSK”) pulp unit sales realizations, and to a lesser extent, a 2 cent, or 2%, weaker Canadian dollar.
Canfor Pulp Products’s President and CEO, Kevin Edgson, said, “This was a solid quarter for Canfor Pulp, as we focused on enhancing our operational performance and improving reliability while navigating persistent supply chain and fibre-related challenges, in order to realize high NBSK pulp list prices. While we will continue to actively monitor the current external challenges facing our business, including the fibre situation in British Columbia, our immediate focus remains on optimizing productivity while preserving our solid balance sheet.”
The Company’s results in the 4Q 2022 will see the continuation of Intercon’s scheduled maintenance outage into October, with an estimated 6,000 tonnes of reduced NBSK pulp production. In addition, NBSK pulp production in the 4Q will reflect a temporary curtailment at Intercon due to a lack of available economic fibre (approximately 16,000 tonnes). The current weakness in lumber markets may result in extended sawmill curtailments in the British Columbia Interior, with the risk that lower volumes of sawmill residual chips available to pulp mills may cause further downtime at the Company’s operations. The Company will continue to closely monitor the supply chain challenges as well as the availability of economically viable fibre, and will adjust future operating plans accordingly, through the balance of 2022.
Canfor Pulp is a leading global supplier of pulp and paper products.
