Canfor Pulp Products Inc. reported an adjusted net loss of $42.9 million in 2022, despite making nearly $1.09 billion in sales during the year.
Before adjustments, the company’s operating loss was $58.6 million, a $90.5 million decrease from the adjusted operating income of $31.9 million in 2021.
“2022 was a difficult year for Canfor Pulp, as strong global pulp market fundamentals and near-record high pulp list prices were more than outweighed by the impact of global supply chain disruptions, fibre shortages in British Columbia… as well as operational efficiency and reliability challenges at all of the Company’s pulp mills,” the company reported. “After taking account of adjusting items, the company’s operating loss for the fourth quarter of 2022 was $42.0 million compared to an adjusted operating income of $18.1 million for the previous quarter. The loss in the current period principally reflected the impact on pulp production of material reductions in the company’s residual fibre supply, as well as challenging operating conditions due to winter weather in B.C.”
On Jan. 11, Canfor Pulp announced it was permanently closing the pulp line at the Prince George Pulp and Paper Mill, resulting in a reduction of 300 jobs. The company wrote down $49.6 million in assets in 2022 “as a result of this decision, as well as the ongoing challenges to the business posed by fibre availability and costs.”
“The decision to shut down the pulp line at Prince George Pulp and Paper mill was extremely difficult, but necessary, in order to right-size our operating platform and set the company up for a sustainable long-term future,” Canfor Pulp president and CEO Kevin Edgson said. We are working to support our employees through these transitions and regret the impact these decisions have on our employees, their families and the local community.”