Conifex Timber Inc. (CFF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, ladies and gentlemen. Welcome to the County Tax Chamber, Inc. 2Q2025 results call. I want to ask the chair of the meeting over to Mr. Ken Shields. Please go ahead. Yes, well, thank you, Patrick, and good morning, everyone, and welcome to our call covering our second quarter and first half 2025 results. Right next to me, we've got President and Chief Operating Officer Andrew McClellan, I'm also joined by Chief Financial Officer Trevor Pruden. So the three of us look forward to responding to any questions shareholders and analysts may have after we run through our prepared remarks. Dealing quickly with the housekeeping item, we will be making forward-looking statements and references to non-IFRS measures. And therefore, call your attention to the warning statement set out on pages one and two of the MD&A that was released earlier this morning. You know, our second quarter results are typically weaker than our first quarter results, and there's two main reasons for that. One is that BC Hydro pays us seasonally high power prices in Q1 when the reservoir levels are low, but they pay us lower prices in Q2 when the reservoir levels are high as a result of the spring snowmelt. The second reason is that we always work to schedule our annual maintenance shutdown at our power plant in Q2 when power prices are low, and this, of course, enables us to optimize our average price realization and improve EBITDA on an annual basis. Our Q2 results were below the guidance we provided you on our last call, And an important reason was that our maintenance stress was extended compared to what we were thinking. You will note that our Q2 power production was 38% lower than in Q1 and 22% lower than in Q2 of last year. And our maintenance costs in the most recent quarter were hig...