Mercer International Inc. reported Q1 2024 Operating EBITDA of $63.6 million, an increase from $27.5 million in the same quarter of 2023 and $21.1 million in the Q4 2023.
In the Q1 2024, net loss was $16.7 million (or $0.25 per share), which included a non-cash loss on disposal of $23.6 million (or $0.35 per share) relating to the dissolution of the Cariboo Pulp and Paper joint venture, compared to a net loss of $30.6 million (or $0.46 per share) in the Q1 2023 and a net loss of $87.2 million (or $1.31 per share) in the Q4 2023.
Total revenues for the Q1 2024 increased by approximately 6% to $553.4 million from $522.7 million in the same quarter of 2023 primarily due to higher pulp sales volumes partially offset by lower pulp sales realizations.
Juan Carlos Bueno, CEO, stated: “In the Q1, our operating results were positively impacted by an improved pulp and lumber pricing environment, lower fiber and other production costs and no planned maintenance downtime.
NBSK pulp prices in Europe and North America continued to improve in the Q1, driven by stronger demand, lower customer inventory levels and global supply disruptions. In China, third party industry quoted NBSK net.
Lumber pricing in both the U.S. and Europe also improved in the Q1 2024 as a result of a modest increase in demand. However, we currently expect lumber prices to be generally flat in the Q2 as demand continues to be impacted by high interest rates and economic uncertainty.”
Mr. Bueno concluded: "Overall, conditions continued to improve in the Q1, including better pricing and lower production costs for our pulp segment. While we expect this momentum to continue in the Q2 2024, we remain steadfast in managing our costs and liquidity prudently. As a result of our strong liquidity, we believe we are well positioned to execute our business plan through the business cycle."
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.
