Mercer International's total revenues for the 2Q 2016 decreased by approximately 18% to $218.1 million from $266.9 million in the same quarter of 2015, primarily due to lower pulp revenues, as the company said in the press release received by Lesprom Network.
In the 2Q 2016, operating income decreased by approximately 50% to $16.8 million from $33.5 million in the same quarter of 2015.
In the 2Q 2016, Operating EBITDA decreased by approximately 31% to $34.7 million from $50 million in the same quarter of 2015.
For the 2Q of 2016, Mercer International had a net loss of $4.2 million, compared to net income of $16.4 million in the 2Q 2015.
David M. Gandossi, CEO, stated: "In the current quarter, our German mills operated very well, but our Celgar mill had a number of challenges. Its annual maintenance downtime, initially scheduled for 12 days, was extended to 18 days in order to effect additional work that was identified. After completion of such maintenance work, the mill restart was adversely affected by several unexpected factors, including mechanical failures and a disruption to the mill's power supply. These factors collectively resulted in the mill not returning to normalized production for a period of approximately ten days. The aggregate effect of the maintenance downtime and slow restart of the mill reduced pulp production by approximately 37,900 ADMTs and energy generation by approximately 15,000 MWh.”
Total revenues for the six months ended June 30, 2016 decreased by approximately 10% to $472 million from $524.5 million in the same period of 2015, primarily due to lower pulp revenues.
In the first half of 2016, operating income decreased by approximately 42% to $44.9 million from $77.5 million in the same period of 2015.
In the first half of 2016, Operating EBITDA decreased by approximately 28% to $80.1 million from $111.4 million in the same period of 2015, primarily as a result of lower pulp sales realizations, partially offset by lower fiber prices and the reversal of a wastewater fee accrual.
Mercer International Inc. is a global pulp manufacturing company.
