Canada's GreenFirst Q1 sales fall on lower shipments and disruptions

Overview

• Canada lumber producer's Q1 sales fell 21% from Q4 due to lower shipments and disruptions

• Q1 net loss narrowed from prior quarter; adjusted EBITDA loss also improved

• Company secured C$30 mln term loan to support liquidity amid market volatility

Outlook

• Company expects near-term lumber demand to remain below mid-cycle levels due to economic uncertainty

• GreenFirst says stable Ontario fibre supply supports operational continuity despite industry supply constraints

Result Drivers

• OPERATIONAL DISRUPTIONS - Temporary mill curtailments, winter weather-related logistical issues, and scheduled maintenance reduced production and shipments in Q1, per company

• HIGHER LUMBER PRICES - Average realized lumber prices rose to C$666/mfbm in Q1 from C$654/mfbm in Q4, partially offsetting lower shipment volumes

• CHAPLEAU MILL RAMP-UP - Production at the Chapleau mill increased sequentially through the quarter as ramp-up of the new line advanced

Company press release: ID:nBw9MFHnNa

Key Details

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