Canfor’s rocky 2023 continues.
They have posted a $65 million operating loss for the third quarter of 2023 – most of which came from the pulp business – following heavy losses in the second and first quarters of the year as well.
In a release, they said these losses “principally reflected the continuation of soft global pulp market conditions throughout most of the current period combined with extensive downtime at the Company’s Northwood Northern Bleached Softwood Kraft (“NBSK”) pulp mill (“Northwood”)”
“When combined, these factors drove a significant unfavourable timing lag in the Company’s shipments (versus orders) and led to a substantial decline in the Company’s NBSK pulp sales unit realizations in the current quarter.”
Optimistically, Canfor’s President and CEO, Kevin Edgson, said “Market conditions, however, appear to be showing some signs of improvement, but we remain cautious in our market outlook given general global economic pressures. Operationally, while downtime weighed heavily on our third quarter results, we completed our scheduled maintenance outage at Northwood on time and on budget with positive results received from the inspections of our recovery boilers.”
You can find the full 20 page report here.