With some positive momentum late in the quarter as producers attempted to lower their higher-than-average inventory levels, market fundamentals stayed largely unchanged for the majority of the quarter. $4 million in operating income and $3 million in net income, or $0.04 per share, for the fourth quarter of 2024. The indefinite shutdown of one production line at its Northwood NBSK pulp plant in August 2024 was the main cause of the 22% drop in pulp production in Q4 2024 (compared to Q3 2024). There are ongoing issues with British Columbia’s economic fiber availability.
Fourth quarter highlights
In Q4 2024, the Company reported $4.1 million operating income, a significant improvement from the $209.3 million operating loss in Q3. Adjusted operating income rose $2.4 million to $1.7 million compared to the previous quarter. Canfor‘s pulp segment results for the fourth quarter of 2024 show the full quarter impact of this curtailment on pulp production (a reduction of approximately 300,000 tones of market kraft pulp production annually), along with an associated impact on shipments and costs. This is because, as previously mentioned, the Company completed the wind down of one production line at its Northwood Northern Bleached Softwood Kraft (“NBSK”) pulp mill”) in August 2024.
Despite a decline in pulp segment results, the Company’s overall operating income improved due to higher paper sales to North America and increased production. Global softwood pulp market conditions remained stable in the fourth quarter of 2024 after a slight decline in the previous quarter. However, as manufacturers sought to lower their above-average inventory levels, there was some positive momentum in global demand and purchasing activity later in the quarter.
About Canfor Pulp Products Inc.
Canfor Pulp Products Inc. (“Canfor Pulp” or “CPPI”) is a major worldwide provider of pulp and paper goods, operating in the northern interior of British Columbia (“BC”) and producing low-carbon forest products. It also provides high-quality, sustainable wood solutions. Canfor Pulp manufactures 140,000 tones of kraft paper and 780,000 tones of Premium Reinforcing Northern Bleached Softwood Kraft (“NBSK”) pulp at its two mills in Prince George, British Columbia. In order to produce high-quality goods that satisfy changing worldwide demands, we strive to employ every fiber, whether it be in structural lumber, premium boards, engineered beams, pulp, paper, or bioproducts.
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