Suzano Announces Third Quarter 2023 Results

HIGHLIGHTS

  • Pulp sales of 2,486 thousand tons (-11% vs. 3Q22).
  • Paper sales1 of 331 thousand tons (stable vs. 3Q22).
  • Adjusted EBITDA2 and Operating cash generation3 : R$3.7 billion and R$1.9 billion, respectively.
  • Adjusted EBITDA2/ton from pulp of R$1,172/ton (-57% vs. 3Q22).
  • Adjusted EBITDA2/ton from paper of R$2,366/ton (-16% vs. 3Q22).
  • Average net pulp price in export market: US$547/ton (-33% vs. 3Q22).
  • Average net paper price1 of R$7,085/ton (+3% vs. 3Q22).
  • Pulp cash cost ex-downtime of R$861/ton (-2% vs. 3Q22).
  • Leverage of 2.7 times in USD and 2.6 times in BRL.
  • Cerrado Project completes 78% of physical progress and 68% of financial progress.

Despite the drop in average net pulp price, the third quarter of 2023 was marked by improved market sentiment, mainly due to the significant growth in demand in China. The evolution of fundamentals sustained a sequence of price increases which, however, are not yet fully reflected in the 3Q23 results. In this context, lower prices combined with practically stable volumes led to the reduction in adjusted EBITDA in this segment. Cash cost of production excluding scheduled maintenance downtime decreased once again, mainly due to lower consumption and lower input prices. The paper business unit posted resilient results in the domestic market; however, the decline in export market prices was the main reason for the decline in EBITDA per ton during the period. Consolidated adjusted EBITDA in the quarter came to R$3.7 billion, while operating cash flow reached R$1.9 billion.

As for financial management, net debt in USD increased slightly to US$11.5 billion, mainly due to the largest investment cycle in the company’s history aimed at generating significant and sustainable value in the long term. Leverage in USD stood at 2.7 times, mainly due to the decrease in Adjusted EBITDA in the last 12 months. The foreign exchange hedging policy continued to play its part, bringing in a positive cash inflow of R$0.7 billion.

Continuing the advances made in its strategy, within the context of the “Being an important player in pulp through solid projects” and “Be best in class in the total pulp cost vision” avenues, the physical progress of Cerrado Project remains as expected, reaching 78%, while financial progress was 68%. The company expects the project to go operational by June 2024, as announced earlier.
details at: https://s201.q4cdn.com/761980458/files/doc_news/2023/10/3Q23/Release-de-Resultados_3T23_EN_vf.pdf

Related Posts

GreenFirst Forest Products announces $24 Million financing for Kap Paper

GreenFirst Forest Products Inc. announces Kap Paper Inc., a wholly owned subsidiary of GreenFirst, has entered into a loan agreement with a third party establishing a non-revolving term loan facility of up to $24 million to support its paper mill operations in the town of Kapuskasing. The loan is to be used for general working capital purposes. “The financing will afford us the opportunity to move forward our long-term strategy for Kap Paper, ensuring its competitiveness,” said Terry Skiffington, Kap Paper’s CEO. Kap Paper remains focused on mill operations and has made considerable improvement on the operational challenges faced in the last two reported quarters, some of which were caused by external events. Kap Paper looks to build on this momentum to further improve operational efficiencies in what has been a tough pricing environment for paper products. Kap Paper is the only pulp and paper mill operating in Eastern Ontario. As such, its operations are imperative to help mitigate challenges related to diminishing chip consumption, which is jeopardizing sawmill operations in Ontario.

WestRock Wins Two Awards at This Year’s Spirit of Alliance Awards

The Georgia Minority Supplier Development Council (GMSDC) recognized supplier diversity champions at the 35th Spirit of Alliance Awards, held on August 25, at the Atlanta Marriott Marquis hotel. The Spirit of Alliance Gala honors the corporations, Minority Business Enterprises (MBEs) and supplier diversity advocates that are setting the standard for small business development and creating opportunities for minority-owned businesses in Georgia. The Spirit of Alliance Awards honors corporations', Minority Business Enterprises (MBEs) and supplier diversity advocates that are setting the standard for small business development and creating opportunities for minority-owned businesses in Georgia. Click Read More below for additional information.

Rottneros invests another 117 SEKm within the framework of Agenda 500

As a next step in the capacity development of Rottneros Mill, Rottneros’ Board has granted further investments in the CTMP line. The investment, CTMP Step 2, increases capacity by approximately 18,000 tonnes per year and is expected to be operational in the fall of 2018. The investment follows the strategic development plan Agenda 500, where a first capacity-enhancing investment in the CTMP line was made in 2016. Within Agenda 500, Rottneros Mill has put into operation a bio mass boiler in the third quarter of 2017 that replaces an oil-based boiler and made the mill practically fossil-free. The expansion of the purification plant is an ongoing investment that is expected to be put into operation in 2018. The Rottneros Mill has a strong position as a supplier of high yield pulp. With increased capacity, we ensure that Rottneros can be a reliable supplier of CTMP and an attractive partner for our customers, says Lennart Eberleh, President and CEO of Rottneros AB. Click Read More below for additional information.
Back To Top
×Close search
Search