Mercer International Inc. Reports Third Quarter 2024 Results and Announces Quarterly Cash Dividend of $0.075

Core Insights - Mercer International Inc. reported a 35% increase in Operating EBITDA to $50.5 million for Q3 2024, compared to$37.5 million in Q3 2023, despite a net loss of $17.6 million [1][2][13] - The company experienced strong softwood pulp market conditions, although production was affected by unplanned downtime at the Peace River mill [3][5] - A quarterly cash dividend of$0.075 per share was announced, to be paid on December 26, 2024 [35] Financial Performance - Total revenues for Q3 2024 increased by approximately 7% to $502.1 million from$470.8 million in Q3 2023, driven by higher pulp and manufactured products sales realizations [11][30] - Operating income for Q3 2024 was $8.8 million, a significant improvement from a loss of$3.4 million in Q3 2023 [11][43] - The net loss for Q3 2024 was $17.6 million, an improvement from a net loss of$26.0 million in Q3 2023 [2][43] Pulp Segment Insights - Pulp revenues increased by approximately 11% to $354.2 million in Q3 2024 from$318.1 million in Q3 2023, primarily due to higher sales realizations [15][16] - Average NBSK pulp sales realizations rose by approximately 22% to $814 per ADMT in Q3 2024 from$666 per ADMT in Q3 2023 [16] - Total pulp production decreased by approximately 13% to 415,837 ADMTs in Q3 2024 compared to 479,924 ADMTs in Q3 2023, largely due to unplanned downtime [19] Solid Wood Segment Insights - Solid wood segment revenues increased by approximately 5% to $125.1 million in Q3 2024 from$119.5 million in Q3 2023, driven by higher manufactured products revenues [23] - The operating loss for the solid wood segment improved to $14.7 million in Q3 2024 from$19.7 million in Q3 2023 [22] - Manufactured products revenues surged by approximately 71% to $35.8 million in Q3 2024 from$20.9 million in Q3 2023, reflecting strong growth in the mass timber business [26] Market Conditions - Softwood pulp prices remained at historically high levels in North America and Europe, with positive pricing momentum observed in China towards the end of Q3 2024 [5][6] - Hardwood pulp prices in China decreased in Q3 2024 but are expected to stabilize in Q4 2024 [6] - Lumber sales realizations decreased slightly in Q3 2024 compared to Q2 2024, but moderate increments in lumber prices are anticipated in Q4 2024 [6][29] Debt and Liquidity - The company successfully refinanced $300 million of 2026 Senior Notes, reducing long-term debt by$100 million and extending maturity to 2028 [8] - As of September 30, 2024, the company had cash and cash equivalents of $239.0 million and total liquidity of approximately$554.2 million [34]