Canfor Extending Temporary Curtailments in B.C.

Total European shipments of graphic papers in October 2021 were down 3.1% vs. October 2020 and were UP 4.5% year-to-date. Total European shipments of newsprint in October 2021 were down 6.4% vs. October 2020 and were down 3.7% year-to-date. Total European shipments of sc-magazine in October 2021 were down 12.5% vs. October 2020 and were UP 0.7% year-to-date. Total European shipments of coated mechanical reels in October 2021 were down 7.6% vs. October 2020 and were UP 2.4% year-to-date. Total European shipments of uncoated mechanical (improved & others) in October 2021 were down 77.2% vs. October 2020 and were UP 3.5% year-to-date. Total European shipments of coated woodfree in October 2021 were UP 13.2% vs. October 2020 and were UP 11.6% year-to-date. Total European shipments of uncoated woodfree in October 2021 were down 0.1% vs. October 2020 and were UP 11.2% year-to-date.

Interfor Corporation announced plans to reduce its lumber production output in the fourth quarter of 2022 by approximately 200 million board feet, or 17% of quarterly capacity, as current economic conditions and market uncertainty have led to reduced lumber demand. This temporary reduction in output is expected to be spread across each of the Company’s operating regions, primarily timed around U.S. Thanksgiving and Christmas holiday periods, and used to accelerate ongoing capital and maintenance projects. The Company’s lumber inventories are currently within normal volume parameters, and these plans are expected to maintain the balance between production and market demand through the remainder of 2022. The Company currently expects to resume its normal operating schedule in January 2023, but will closely monitor market conditions and adjust its production plans accordingly.

Norske Skog’s EBITDA in the second quarter of 2024 was NOK 471 million, an increase from NOK 76 million in the first quarter of 2024. The second quarter EBITDA was positively impacted by insurance at Norske Skog Saugbrugs of NOK 338 million. Despite signs of positive developments in the publication and containerboard markets, closures are still required. The process to deliver a main study on the BCTMP-production project (bleached chemi-thermomechanical pulp) at Saugbrugs has started. Cash flow from operations was NOK 299 million in the quarter compared to NOK -69 million in the previous quarter. The second quarter cash flow was positively influenced by somewhat higher sales prices and -volumes, and a decrease in working capital due CO2 related proceeds. Operating earnings in the second quarter of 2024 were NOK 364 million compared to operating earnings in the first quarter of 2024 of NOK -177 million. The operating earnings in the quarter were affected by insurance at Norske Skog Saugbrugs of NOK 338 million, non-cash changes in fair value of energy contracts in Norway amounting to NOK 44 million and depreciation of NOK 128 million. Profit before tax in the quarter was NOK 311 million compared to loss before tax of NOK -382 million in the previous quarter.