Conifex Timber's Lumber Output Dipped in Q1 2023

SEATTLE (Scrap Monster): Conifex Timber Inc. reported results for the first quarter ended March 31, 2023.

The company reported net loss of $8.1 million or $0.20 per share for the quarter, compared with net income of $11.4 million or $0.28 per share in the year-ago quarter. It reported negative EBITDA of $6.9 million for the quarter. This compares with EBITDA of $20.1 million in the first quarter of 2022.

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Conifex Timber reported lumber production of approximately 41.2 million board feet in Q1 this year, at a reduced operating rate of nearly 69% of the annualized capacity. It must be noted that the lumber production had totalled 47.1 million board feet at an operating rate of 79% in the same quarter a year before. Meantime, the shipment of Conifex produced lumber totaled 40.6 million board feet, higher by 28% from the prior quarter, but down by 4% from Q1 2022.

Commenting on its market outlook, Conifex Timber stated that it expects lumber markets to continue to experience weakness through 2023, as global market conditions continue to evolve. The Mackenzie sawmill is likely to report increased lumber production in 2023, over the previous year. Also, the company hopes to maintain high levels of working capital through the remainder of the year.