*Higher pulp sales realizations contributed to record Operating EBITDA* of $99.4 million in the first quarter of 2018; and
*After giving effect to costs of $28.5 million ($0.44 per basic and $0.43 per diluted share) relating to the redemption of senior notes and a NAFTA legal cost award, net income was $25.6 million ($0.39 per share).
Mercer International Inc. (Nasdaq: MERC, TSX: MERC.U) today reported strong results for the first quarter ended March 31, 2018. Operating EBITDA* in the current quarter increased by 64% to a record $99.4 million from $60.6 million in the first quarter of 2017 and by 11% from $89.5 million in the fourth quarter of 2017.
For the first quarter of 2018, after giving effect to costs of $28.5 million, or $0.44 per basic and $0.43 per diluted share, for the redemption of senior notes and a NAFTA legal cost award, net income was $25.6 million, or $0.39 per share, compared to $9.7 million, or $0.15 per share, for the first quarter of 2017, after giving effect to costs of $10.7 million (or $0.17 per basic and $0.16 per diluted share), for the redemption of senior notes, and $41.7 million, or $0.64 per share, in the fourth quarter of 2017.
Mr. David M. Gandossi, the Chief Executive Officer, stated: “We are pleased with our performance and results for the first quarter of 2018 as:
* we generated record Operating EBITDA of $99.4 million in the current quarter;
* in 2018 we continued realizing on identified fiber synergies between the Friesau Facility and our German pulp mills. In the first quarter of 2018, including fiber, we estimate we have realized approximately $3.5 million of synergy savings; and
* our pulp mills had solid production in the current quarter, with no scheduled maintenance downtime.
At the end of the first quarter of 2018, pulp list prices were approximately $1,130, $910 and $1,260 per ADMT in Europe, China and North America, respectively. List prices increased due to continued steady demand, producer downtime, low paper producer inventories and lower levels of recycled fiber availability in China due to recent import restrictions.
Currently, the NBSK pulp market is generally balanced with world producer inventories at about 31 days’ supply. We continue to believe that the approximately half a million ADMTs of incremental NBSK pulp capacity expected to come online in mid-2018 will not have a material negative impact on the market in the near term as a result of continued steady demand growth, scheduled producer downtime and declining recovered or waste paper availability in China.”
more detail at: https://mercerint.com/assets/docs/Press%20Release%20-%20First%20Quarter%202018(00244911-11_xD4DEC).pdf