Mercer International Inc. Reports 2017 Second Quarter Results

Mercer International Inc. (Nasdaq: MERC, TSX: MERC.U) today reported results for the second quarter ended June 30, 2017. Operating EBITDA* in the second quarter of 2017 increased by approximately 13% to $39.1 million from $34.7 million in the same quarter of 2016 but declined from $60.2 million in the prior quarter. In the current quarter, strong operating performance was partially offset by a large planned maintenance shut along with foreign exchange losses on foreign currency balances. In the current quarter, we had 22 days of annual maintenance downtime at our pulp mills compared to 21 days in the comparative quarter and no such downtime in the prior quarter of 2017.

For the second quarter of 2017, we had a net loss of $2.1 million, or $0.03 per basic and diluted share, compared to a net loss of $4.2 million, or $0.07 per basic and diluted share, in the comparative quarter. In the prior quarter, we had net income of $9.7 million.

Since April 12, 2017, when we acquired the Friesau sawmill and power plant in Germany (the “Friesau Facility”), we have two reportable operating segments being pulp and wood products.

Mr. David M. Gandossi, the Chief Executive Officer, stated: “In the current quarter, we completed the largest planned maintenance shut in our Celgar mill’s history. The shut was well planned and executed and we were also able to perform additional work that was intended to be completed later in the year. The mill returned to full production immediately after startup and continues to operate well through July. On average, our pulp mill production was up 7% compared to the same quarter of 2016 and included a quarterly production record at our Rosenthal mill. Pulp markets were generally strong and sales volumes were about 18% higher than the comparative quarter.”

Mr. Gandossi continued: “During the quarter, we had annual maintenance downtime of 22 days (approximately 32,500 ADMTs), which impacted our operating income by approximately $27.5 million, comprised of approximately $21.0 million in direct out-of-pocket expenses and the balance in reduced production. Many of our competitors that report their financial results using International Financial Reporting Standards (“IFRS”) capitalize their direct costs of maintenance downtime.”
more detail at:  https://mercerint.com/assets/docs/2017-07-27-mercer-q2-earnings-press-release-final.pdf

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