GreenFirst Reports Financial Results for the Third Quarter of 2023

GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) announced results for the third quarter and three quarters ended September 30, 2023. The Company’s interim financial statements (“Financial Statements”) and related Management’s Discussion and Analysis (“MD&A”) for the third quarter and three quarters ended September 30, 2023 are available on GreenFirst’s website at www.greenfirst.ca and on SEDAR+ at www.sedarplus.ca.

Highlights
*Third quarter 2023 net earnings from continuing operations was $2.7 million or $0.01 per share (diluted), compared to net loss of $9.7 million or a loss of $0.05 per share (diluted) in the second quarter of 2023 on the same basis.
*Average lumber prices for Q3 2023 were higher than Q2 2023, with an average selling price of $642/mfbm compared to $596/mfbm in Q2 2023. There was strong pricing momentum toward the latter half of the second quarter due to supply related concerns, which benefited results at the beginning of the third quarter. However, volumes in the third quarter were lower than Q2 2023 due to reduced demand given macroeconomic uncertainties.
*The valuation provision for lumber and log inventory was decreased to $1.9 million from $8.7 million at the end of Q4 2022, generating a $6.8 million credit to cost of sales in the three quarters ended September 30, 2023.
*US Department of Commerce’s (“US DOC”) Final Determination of its Fourth Administrative Review resulted in a final duty rate of 8.05%. The Company stands to benefit from an approximate US$6.9 million (CAD$9.2 million) recovery on duties paid in 2021, as recorded in Q3 2023. Additionally, the ongoing lower duty rate has positively impacted the Company’s earnings and free cash flow since August 1, 2023.
*There continues to be downward pressure on newsprint and paper products prices.
*A corporate reorganization was initiated this fall to separate the assets from the lumber mills and the paper mill. This reorganization aims to provide for increased alignment of incentives, cost control measures and focus on the unique aspects of each business.
*On November 6, 2023, the company appointed Joel Fournier as its new Chief Executive Officer. Mr. Fournier is a seasoned executive with over two decades of hands-on experience in lumber mills across both Eastern and Western Canada.

“Our business showed resiliency in the third quarter, despite a low pricing environment,” said Paul Rivett, GreenFirst’s Executive Chair. “Our mill teams continue to focus on productivity gains, particularly the Chapleau team which has broken production records, and we expect further improvements in the coming quarters under the leadership of our new CEO, Joel Fournier.”
details at: https://greenfirst.ca/2023/11/13/

Related Posts

Metsä Group’s comparable operating result in January–March 2023 was EUR 276 million

January–March 2023 (1–3/2022) *Sales were EUR 1.634 million (1.594). *Operating result was EUR 276 million (341). Comparable operating result was EUR 276 million (244). *Result before taxes was EUR 271 million (330). Comparable result before taxes was EUR 272 million (232). *Comparable return on capital employed was 15.3% (15.8). *Net cash flow from operations was EUR 38 million (135).

Twin Rivers Paper Names Tyler Rajeski as President & CFO

Twin Rivers Paper Company has announced the promotion of Tyler Rajeski to President and Chief Financial Officer. In the new role, Rajeski will oversee all functions of the business, including finance, procurement, operations, customer supply chain, sales and human resources. Rajeski continues to report to the Chief Executive Officer of Twin Rivers Paper, Debabrata ‘Deba’ Mukherjee. “Tyler has done a spectacular job leading several significant initiatives for Twin Rivers Paper, including a major refinancing of the business that has provided Twin Rivers with a strong working capital position, and the recent sale of the company’s Plaster Rock softwood lumber operation that benefits Twin with a long-term supply agreement,” stated Mukherjee. “Tyler’s impressive accomplishments in a relatively short timeframe have created strategic value for the business that will help ensure its long-term success.”

Tronox Reports Second Quarter 2024 Financial Results

Chief Executive Officer John D. Romano commented, “Tronox’s second quarter performance was consistent with our previous guidance and demonstrated the continued recovery across both TiO2 and zircon. Our TiO2 volumes increased 8% compared to the first quarter, or 16% compared to the prior year quarter, as we continued to see demand increase across all regions, consistent with seasonal trends. Zircon demand remained relatively stable compared to the first quarter. Pricing for both TiO2 and zircon increased from the first quarter into the second, as expected, partially offset by unfavorable mix. We generated $84 million in free cash flow in the quarter and returned $41 million to shareholders in the form of dividends. “On the operations side, our average pigment plant utilization rate in the second quarter was lower than targeted, driven by short-term challenges relating to ramping up our assets. As a result, we incurred higher costs in the second quarter than anticipated and delivered Adjusted EBITDA at the lower end of our guided range. While this will impact the margins of pigment sold in the third quarter, the operating challenges we experienced during the ramp up in the second quarter are resolved, and our average pigment plant utilization rate for July was in the range of 80%.”
Back To Top
×Close search
Search