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Conifex Timber Inc. Reports Q2
Conifex Timber Inc. has reported its financial results for the second quarter ended June 30, 2023. The company¡¯s EBITDA was negative $8.7 million for the quarter, compared to positive EBITDA of $20.1 million in the same quarter of the previous year. The net loss for the quarter was $9.2 million or $0.23 per share, in contrast to net income of $12.3 million or $0.31 per share in the previous year. These results reflect lower operating earnings due to reduced lumber prices and shipments resulting from the curtailment of the Mackenzie sawmill in June.
During the quarter, Conifex¡¯s revenue from lumber products totaled $19.8 million, a decrease of 27% from the previous quarter and a decrease of 71% from the same quarter in the previous year. The decrease in revenue was primarily due to lower shipment volumes and lower net realizations on lumber market prices.
Lumber production in the second quarter of 2023 was approximately 32.5 million board feet, representing operating rates of approximately 54% of annualized capacity. This production reflected 20 days of unscheduled downtime to address low reservoir levels and decreased demand for lumber. Shipments of Conifex-produced lumber totaled 31.1 million board feet in the quarter, a decrease of 23% from the previous quarter and a decrease of 44% from the same quarter in the previous year. Wholesale lumber shipments remained consistent throughout the comparative periods.
The decline in lumber market prices in the second quarter of 2023 was driven by reduced overall demand for lumber. Despite a slight increase in US housing starts compared to the previous quarter, the market was still down 13% from the same quarter in the previous year.
Conifex Timber Inc. faced challenges in the second quarter of 2023 due to weakened lumber prices and reduced demand. The company implemented curtailments and experienced lower shipment volumes. However, it remains committed to optimizing production and managing costs to mitigate the impact of market fluctuations.