Conifex Timber Inc. reported results for the Q4 and year ended December 31, 2023. EBITDA from continuing operations was negative $3.5 million for the quarter and negative $25.8 million for the year, compared to EBITDA of $2.3 million in the Q4 2022 and $46.7 million for the year. Net loss was $30.6 million or negative $0.77 per share for the year versus net income in the preceding year of $0.61 per share.
2023
Conifex Timber generated net income of ($30.6) million or ($0.77) per share in 2023. Net income was $24.5 million or $0.61 per share in 2022. Its Power Plant resumed operations in late January 2023 after approximately 7 months of continuous maintenance related downtime starting in July 2022.
Summary of Q4 2023 results
Consolidated net earnings during the Q4 2023, Conifex Timber incurred a net loss from continuing operations of $5.3 million or $0.14 per share compared to a net loss of $8.0 million or $0.20 per share in the previous quarter and net loss of $0.2 million or nil per share in the Q4 2022. The net loss in the Q4 2023 was primarily the result of the lower lumber sales prices, partially offset by a strong quarter of power generation.
North American lumber market prices continued to be below breakeven in the Q4 2023. Canadian dollar-denominated benchmark WSPF prices, which averaged $547 in the Q4, decreased by 2% or $12 from the previous quarter and were virtually identical to the Q4 2022. The ongoing period of lower market prices were attributed to lower demand from reduced new home construction activity in the US, elevated offshore lumber import levels to US markets, and inflationary pressures negatively impacting repair and remodeling activities. US housing starts on a seasonally adjusted annual basis averaged 1.45 million in the Q4 2023, up 6% from the previous quarter and 6% from the Q4 2022.
Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.
