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Conifex reports net loss from continuing operations in Q3

Conifex Timber is reporting a third-quarter net loss from continuing operations of $0.9 million or $0.02 per share compared to net income of $26.1 million in the previous quarter and $2.0 million or in the third quarter of 2020.

The B.C. company’s lumber production in the third quarter of 2021 totalled approximately 40.1 million board feet, representing operating rates of approximately 67% of annualized capacity. In the previous quarter, 49.0 million board feet of lumber was produced. The decrease in lumber production for the third quarter was largely driven by the temporary curtailment of lumber production operations for two weeks in August 2021. This curtailment was necessitated by the combined impact of record high delivered log costs and a collapse in lumber prices following the record high peak in pricing seen in the second quarter. In the third quarter of 2020, 48.0 million board feet of lumber was produced, reflecting the gradual ramp-up to normalized operating levels following a pandemic-related curtailment.

Shipments of Conifex produced lumber totalled 34.1 million board feet in the third quarter of 2021, representing a decrease of 39% from the 55.5 million board feet shipped in the previous quarter and 13% from the 39.2 million board feet of lumber shipped in the third quarter of 2020. Shipments of Conifex produced lumber in the third quarter of 2021 were affected by the temporary curtailment at our Mackenzie sawmill and a shift in focus to offshore markets to minimize the impact of the depressed lumber pricing. Confiex’s wholesale lumber program shipped 6.0 million board feet in the third quarter of 2021, representing an increase of 3% from the 5.8 million board feet shipped in the second quarter of 2021 and 757% from the
0.7 million board feet shipped in the third quarter of 2020.

The company’s Mackenzie power plant sold 53.7 gigawatt hours of electricity under our Electricity Purchase Agreement (EPA) with BC Hydro in the third quarter of 2021 representing approximately 96% of targeted operating rates. The Mackenzie power plant sold 50.9 and 54.9 gigawatt hours of electricity in the previous quarter and third quarter of 2020, respectively.

Read the company’s full Q3 report here.