Conifex Timber Plunged to Net Loss in 2019

SEATTLE (Scrap Monster): Vancouver, B.C.-based Conifex Timber Inc. reported 2019 year-end and fourth quarter results.

The company reported net loss of $30.4 million in 2019, as compared to net loss of $7.3 million in 2018. The revenues fell sharply from $379.1 million to $157.4 million over the year. The revenue decline was mainly due to reduced shipments by lumber segment on account of lower operating rates in B.C. area mills. The lumber segment reported operating loss of $41.4 million in 2019, as compared to operating earnings of $19.1 million in 2018. The shipments of Conifex produced lumber totalled 212 million board feet in 2019, which is only 46% of the 2018 shipment volumes of 458 million board feet.

ALSO READ: Conifex Timber to Sell Three U.S. South Sawmills to Resolute Forest Products

Conifex Timber incurred net loss of $10.2 million in Q4 last year, whereas revenues totalled $27.7 million. The company recorded operating loss of $11.5 million during the quarter. The adjusted EBITDA from continuing operations was negative $3.9 million. Consolidated net loss in the fourth quarter of 2019 was $162.6 million.

Meantime, the company hopes that reduced lumber shipments in 2019 coupled with more normal lumber demand from key markets are likely to result in more balanced lumber market in 2020. Conifex Timber foresees some improvement in average lumber prices from the previous year.