Suzano Reports Strong Operating and Financial Performance in Q2-2017

Suzano Papel e Celulose (B3: SUZB5), one of the largest integrated pulp and paper producers in Latin America, announces today its consolidated results for the second quarter of fiscal year 2017 (2Q17).

In the second quarter of 2017, the pulp segment continued to deliver solid results, driven mainly by strong and healthy demand from Asia. The commodity’s positive fundamentals once again supported successive price increases in all regions. The weaker BRL also had a positive effect on industry profitability.

The paper segment remained pressured by Brazil’s caustic macroeconomic scenario. The Suzano Mais Program, which works to strengthen relations with agents at the end of the value chain, helped to enhance the profitability of the paper business.

Suzano continues to focus intently on its structural competitiveness by optimizing its cost and expense structure. A highlight in the quarter was the performance of our pulp cash cost, which once again was the industry’s lowest, reflecting the continued downward trend towards our target cash cost of R$570/ton² for 2018 and R$475/ton² for 2021-2022.

Another factor supporting the Company’s strategy was its capital discipline, with the efforts in this area validated by the performance of Sustaining CAPEX/ton, which, supported by productivity gains, has continued to lag inflation.

Our commitment to financial discipline was further bolstered by the reductions in gross debt and leverage ratio, which ended the quarter at 2.7 times Net Debt/Adjusted EBITDA. The Company’s Net Debt, which is 100% denominated in U.S. dollar, has an average cost of 4.9% p.a. and average term of 62 months, which represents a solid financial profile.

The Adjusted EBITDA³ of R$973/ton and strong Cash Generation4 of R$766/ton represented other areas in which we outperformed the overall industry. The ROIC of 11.3% reflects the positive effects from exogenous factors (pulp price and exchange rate), as well as the disciplined control of costs and expenses.
more detail at:  http://ir.suzano.com.br/enu/6434/Earnings%20Release%202Q17_FV.pdf

Related Posts

Paper Excellence Announces Temporary Curtailment of Catalyst Paper Tiskwat Mill in Powell River, BC

Paper Excellence announced the temporary curtailment of operations at its Catalyst Paper tiskwat mill. Severe challenges with local and global supply chain congestion exacerbated by BC’s recent atmospheric river event have caused significant paper inventory and movement problems for the company. The curtailment is targeted to begin in the week of November 22, 2021 and we will evaluate conditions for potential restart in early January 2022. Paper Excellence will endeavour to supply paper customers with production from Crofton and Port Alberni as it hopes for a speedy return to normalcy of supply chain performance. Crofton’s pulp and paper operations are currently curtailed until November 24 with its power boiler’s maintenance outage. The company continues to believe that Canada is a leader in the pulp and paper industry and remains committed to its long-term investments here.

Norske Skog Skogn enters into a new long-term energy contract with Statkraft

Norske Skog Skogn and Statkraft have entered into a new long-term industrial energy agreement, which together with previous contracts, will secure large parts of the mill's energy supply on competitive terms until 2030. - This agreement will give the Skogn mill stable energy supply at predictable and acceptable prices. The agreement contributes to secure jobs and the long-term competitiveness of Skogn. At the same time, this is important for the forest sector in Central Norway, says Sven Ombudstvedt, CEO of Norske Skog and chairman of Norske Skog Skogn AS.

Pactiv Evergreen Inc. Completes Sale of Pine Bluff Paper Mill and Waynesville Extrusion Facility to Suzano S.A.

Pactiv Evergreen Inc. announced it has completed its previously announced sale of the Pine Bluff, Arkansas, paper mill and Waynesville, North Carolina, extrusion facility to Suzano S.A. “The closing of this transaction marks an important milestone as we focus on our core North American converting operations,” said Michael King, President and Chief Executive Officer of Pactiv Evergreen. “I want to thank the employees at Pine Bluff and Waynesville for their years of dedication and commitment to Pactiv Evergreen and to our customers. In addition to facilitating our transition to a capital light business model, we expect the transaction to improve our profitability and cash flows and strengthen our balance sheet.” The sale proceeds are $110 million,1 subject to customary adjustments for closing amounts such as working capital.
Back To Top
×Close search
Search