Business
Mercer International Inc. Reports First Quarter 2022 Results and Announces Quarterly Cash Dividend of $0.075
Selected Highlights First quarter net income of $88.9 million and Operating EBITDA* of $154.5 millionRecord quarterly pulp, lumber and energy revenues NEW
About this update from Mercer International Inc.
[{"type":"text","content":"Selected Highlights First quarter net income of $88.9 million and Operating EBITDA* of $154.5 millionRecord quarterly pulp, lumber and energy revenues NEW YORK, April 28, 2022 (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq: MERC) today reported first quarter 2022 Operating EBITDA increased to a $154.5 million from $82.0 million in the first quarter of 2021 and decreased from $164.9 million in the fourth quarter of 2021. In the first quarter of 2022, net income was $88.9 million (or $1.35 per basic share and $1.34 per diluted share) compared to $5.9 million (or $0.09 per share) in the first quarter of 2021 and net income of $74.5 million (or $1.13 per basic share and $1.12 per diluted share) in the fourth quarter of 2021. Mr. David Gandossi, the Chief Executive Officer, stated: “Our robust first quarter operating results were driven by strong sales volumes, increased pulp, lumber and energy pricing and our German mills’ sales of surplus energy into the spot market. These positive effects were only partially offset by higher costs for key inputs including fiber, energy and chemicals. Despite the impact of such cost inflation, we believe that our cost control measures will help mitigate the effect of increases going forward and we see our surplus energy sales as a strong hedge for higher energy prices. Overall, our first quarter pulp results compared to the fourth quarter of 2021, benefitted from higher pulp pricing and the Rosenthal turbine running for most of the quarter allowing for surplus energy sales and minimal energy purchases, which were partially offset by higher fiber and natural gas costs. Also, our fourth quarter 2021 results included $31.9 million of business interruption insurance proceeds. In the first quarter of 2022, our Friesau sawmill’s production continued its strong performance and its results were materially improved over the trailing fourth quarter primarily due to improved lumber pricing in the U.S. In the first quarter of 2022, our solid wood segment generated operating income of $40.5 million. Pulp prices improved in all markets during the first quarter as low customer inventory levels and limited supply, including as a result of global logistical slowdowns, led to higher pricing. As of March 31, 2022, third party industry quoted NBSK list prices were approximately $1,345 per ADMT in Europe and net...