CANFOR PULP PRODUCTS INC. 
Overview
- First quarter of 2021 reported operating income of
$4.9 million - Net income of
$8.4 million , or$0.13 per share - Net debt of
$60 million and net debt to capitalization of 9.9% atMarch 31, 2021
Financial Results
The following table summarizes selected financial information for CPPI for the comparative periods:
Q1 | Q4 | Q1 | ||||||||||
(millions of Canadian dollars, except per share amounts) | 2021 | 2020 | 2020 | |||||||||
Sales | $ | 262.4 | $ | 237.8 | $ | 275.6 | ||||||
Reported operating income (loss) before amortization | $ | 25.7 | $ | (6.2) | $ | 27.7 | ||||||
Reported operating income (loss) | $ | 4.9 | $ | (28.3) | $ | 6.1 | ||||||
Adjusted operating income (loss) before amortization1 | $ | 23.5 | $ | (9.2) | $ | 17.0 | ||||||
Adjusted operating income (loss) 1 | $ | 2.7 | $ | (31.3) | $ | (4.6) | ||||||
Net income (loss) | $ | 8.4 | $ | (10.2) | $ | 7.0 | ||||||
Net income (loss) per share, basic and diluted | $ | 0.13 | $ | (0.16) | $ | 0.11 | ||||||
1 Adjusted for inventory write-down recoveries ( |
The Company reported operating income of
During the first quarter of 2021, global pulp markets experienced a surge in US-dollar list prices in response to an uptick in demand, particularly from
NBSK pulp unit sales realizations reflected improved prices on shipments in the current period, which more than offset a
Energy revenues increased in the current quarter reflecting a return to more normalized power generation levels combined with seasonally higher energy prices.
Pulp production was 292,000 tonnes for the current quarter, up 59,000 tonnes, or 25%, from the previous quarter, principally reflecting the benefit of increased operating days following the completion in mid-January of the Company's Northwood NBSK pulp mill's ("Northwood") recovery boiler number five ("RB5") capital-related downtime, offset in part by several operational issues experienced at the Company's
Pulp shipments were up 7,000 tonnes, or 3%, from the previous quarter, largely due to the aforementioned increase in pulp production quarter-over-quarter, offset in part by the replenishment of inventory levels significantly drawn down during the fourth quarter of 2020 due to the Northwood outage. Global transportation constraints also impacted shipment volumes through the current period.
Pulp unit manufacturing costs were moderately lower than the prior quarter as the benefit of increased production in the current quarter was offset in part by seasonally higher energy prices and, to a lesser extent, planned maintenance spend. Fibre costs were broadly in line with the previous period as higher market-based prices for sawmill residual chips offset seasonal pricing adjustments.
Operating income in the Company's paper segment was
Global softwood kraft pulp markets are projected to remain well positioned through the second quarter of 2021, driven by both continued solid demand and tight supply arising from the current global supply chain challenges, as well as the traditional spring maintenance period. Reflecting this ongoing positive momentum, the Company announced increases to its NBSK pulp list prices to
Results in the second quarter of 2021 are anticipated to reflect the record-high pricing as well as a scheduled maintenance outage at the Company's Intercontinental NBSK pulp mill, with a projected 14,000 tonnes of reduced NBSK pulp production, combined with higher associated maintenance costs and lower projected shipment volume.
Bleached kraft paper demand is currently anticipated to show continued strength through the second quarter of 2021 and stabilize through the balance of 2021.
Commenting on the Company's first quarter's results, CPPI's Chief Executive Officer,
Additional Information and Conference Call
A conference call to discuss the first quarter's financial and operating results will be held on
Non-IFRS Measures and Forward Looking Statements
Operating Income (Loss) before Amortization and Adjusted Operating Income (Loss) are not generally accepted earnings measures and should not be considered as an alternative to net income (loss) or cash flows as determined in accordance with IFRS. Refer to the Company's Management's Discussion and Analysis for a reconciliation of Operating Income (Loss) reported in accordance with IFRS to Operating Income (Loss) before Amortization and to Adjusted Operating Income (Loss).
Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and the Company assumes no obligation to update such information to reflect later events or developments, except as required by law.
SOURCE
© Canada Newswire, source
