Conifex Timber Expects Lumber Prices to Dip in Q4

SEATTLE (Scrap Monster): Conifex Timber Inc. reported results for the third quarter ended September 30, 2022.

The company generated net income of $0.9 million or $0.02 per share during the quarter, compared to net loss of $0.9 million or $0.02 per share in the third quarter of 2021. The EBITDA for the quarter surged from f $3.3 million to $4.2 million over the previous year, said the company press release.

The lumber production by Conifex Timber totalled approximately 39.5 million board feet in Q3 this year. This is considerably less when matched with the production of 51.4 million board feet of lumber in the previous quarter, mainly due to reduction in lumber operations to a one-shift basis with effect from August.

The shipments of Conifex-produced lumber witnessed a decline by 19% from the previous quarter and surge by 31% from the prior year quarter to total 44.7 million board feet. The Q3 lumber shipments were badly impacted by the reduced operating schedules in response to railcar supply constraints.

Commenting on the future outlook, Conifex Timber noted that weaker lumber prices are likely to extend to the fourth quarter of the year. Meantime, it expects lumber shipments in Q4 2022 to be in line with sawmill production. Also, it hoped to maintain robust sawlog inventories to support continuous sawmill operations in 2023.

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