Mercer International Inc. reported Q2 2024 Operating EBITDA of $30.4 million, an increase from negative Operating EBITDA of $68.7 million in the same quarter of 2023 and a decrease from Operating EBITDA of $63.6 million in the Q1 2024.
In the Q2 2024, net loss was $67.6 million ($1.01 per share), which included a non-cash impairment of $34.3 million ($0.51 per share) against goodwill related to the Torgau facility, compared to a net loss of $98.3 million ($1.48 per share) in the Q2 2023 and a net loss of $16.7 million ($0.25 per share) in the Q1 2024, which included a non-cash loss on disposal of $23.6 million ($0.35 per share) related to the dissolution of the Cariboo Pulp and Paper joint venture.
Total revenues for the Q2 2024 decreased by approximately 6% to $499.4 million from $529.9 million in the same quarter of 2023 primarily due to lower pulp and lumber sales volumes partially offset by higher pulp sales realizations and manufactured products revenues.
Juan Carlos Bueno, Chief Executive Officer, stated: “The Q2 was another improved quarter for our pulp segment as we continued to benefit from strengthening markets. Despite lower pulp sales volumes primarily stemming from previously announced scheduled downtime and the disposal of Cariboo Pulp and Paper, cash flow from operations improved significantly in the Q2 2024. This improved aggregate liquidity allowed us to reduce borrowings by approximately $45 million under our revolving credit facilities during the quarter.
In the Q2, pulp prices continued to improve in all key markets due to strengthening demand and supply-side disruptions. As these supply-side disruptions ease and we enter into a period of traditionally lower seasonal demand, we currently expect pulp prices to soften slightly in the Q3 2024.”
Mercer International Inc. is a global forest products company with operations in Germany, USA and Canada with consolidated annual production capacity of 2.1 million tonnes of pulp, 960 million board feet of lumber, 210 thousand cubic meters of CLT, 45 thousand cubic meters of glulam, 17 million pallets and 230,000 metric tonnes of biofuels.
