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Mercer International Inc. Announces Preliminary Results for the Third Quarter of 2024 and Earnings Conference Call Details
MERCMercer(MERC) GlobeNewswire News Room·2024-10-16 23:50

Core Viewpoint - Mercer International Inc. reported preliminary financial results for Q3 2024, showing an increase in revenues but continued net losses due to operational challenges [1][2]. Financial Performance - Revenues for Q3 2024 were 502.1million,upfrom502.1 million, up from 499.4 million in Q2 2024 and 470.8millioninQ32023[2].−OperatingincomeforQ32024was470.8 million in Q3 2023 [2]. - Operating income for Q3 2024 was 8.8 million, a significant improvement from a loss of 43.8millioninQ22024andalossof43.8 million in Q2 2024 and a loss of 3.4 million in Q3 2023 [2]. - Operating EBITDA for Q3 2024 was 50.5million,comparedto50.5 million, compared to 30.4 million in Q2 2024 and 37.5millioninQ32023[2][17].−ThenetlossforQ32024was37.5 million in Q3 2023 [2][17]. - The net loss for Q3 2024 was 17.6 million, an improvement from a loss of 67.6millioninQ22024andalossof67.6 million in Q2 2024 and a loss of 26.0 million in Q3 2023 [2]. Liquidity Position - As of September 30, 2024, the company had cash and cash equivalents of approximately 239millionand239 million and 315 million available under revolving credit facilities, totaling about 554millioninaggregateliquidity[3].OperationalChallenges−Thecompanyfacedoperationalconstraintsduetounscheduleddowntimesatitsmills,including23daysattheMercerPeaceRivermillandotherproductionissuesattheStendalandCelgarmills,impactingoverallpulpproduction[4][5].−ThecompanymanagedtoreducedowntimeattheMercerPeaceRivermilltoabout12daysforQ42024,withnofurtherdowntimeplanned[5].MarketEnvironment−AsofSeptember30,2024,NBSKlistpricesinEuropeandNorthAmericawereapproximately554 million in aggregate liquidity [3]. Operational Challenges - The company faced operational constraints due to unscheduled downtimes at its mills, including 23 days at the Mercer Peace River mill and other production issues at the Stendal and Celgar mills, impacting overall pulp production [4][5]. - The company managed to reduce downtime at the Mercer Peace River mill to about 12 days for Q4 2024, with no further downtime planned [5]. Market Environment - As of September 30, 2024, NBSK list prices in Europe and North America were approximately 1,535 per ADMT and 1,735perADMT,respectively,showingsignificantincreasesfrom1,735 per ADMT, respectively, showing significant increases from 1,160 and 1,270perADMTinthepreviousyear[6].−NBSKnetpricesinChinawereapproximately1,270 per ADMT in the previous year [6]. - NBSK net prices in China were approximately 754 per ADMT, up from 715perADMTayearearlier[6].−U.S.benchmarklumberpricesforWesternSPFNo.2andbetterwereapproximately715 per ADMT a year earlier [6]. - U.S. benchmark lumber prices for Western SPF No. 2 and better were approximately 390 per Mfbm, down from $407 per Mfbm in the previous year [7]. Upcoming Events - The company will report its full financial results for Q3 2024 on October 31, 2024, with a conference call scheduled for November 1, 2024, to discuss the results [9][10].