Mercer International reports records Q4 results and strong pulp sales
By P&PC Staff
By P&PC Staff
February 15, 2019 – Mercer International Inc. has reported record results for the fourth quarter ended December 31, 2018, which the company says is due to strong pulp sales realizations and record pulp production.
Operating EBITDA in the current quarter increased to a record $118.1 million from $89.5 million in the fourth quarter of 2017 and $86.7 million in the third quarter of 2018.
For the fourth quarter of 2018, net income increased to $45.0 million, or $0.69 per basic share and $0.68 per diluted share, from $41.7 million, or $0.64 per share, in the fourth quarter of 2017 and $41.2 million, or $0.63 per share, in the prior quarter of 2018.
In 2018, operating EBITDA increased to a record $364.6 million from $253.8 million in 2017. In fiscal 2018, net income was $128.6 million (or $1.96 per diluted share) after giving effect to $33.7 million (or $0.51 per diluted share) in debt settlement, legal cost award and acquisition commitment fee costs. In 2017, net income was $70.5 million (or $1.08 per diluted share), which included $10.7 million in debt settlement costs.
“We are pleased with our record fourth quarter and 2018 results. They reflect record quarterly pulp production, which benefited from our capital investments and strong operating performance,” says David M. Gandossi, chief executive officer of Mercer. “Looking forward to 2019, we are excited by our recent significant expansion through the acquisition of Mercer Peace River Pulp Ltd. (formerly called Daishowa-Marubeni International Ltd.) and the Santanol sandalwood business. MPR operates a swing NBSK and NBHK mill with an annual production capacity of approximately 475,000 ADMTs of pulp and has a 50 per cent joint venture interest in another NBSK mill which represents approximately 170,000 ADMTs of additional annual pulp production capacity.”
“MPR will materially increase our production, revenues and scope of operations in 2019. We are currently focused on integrating both of these operations to ensure a smooth transition and maximize available synergies with MPR,” he says.
Read the full Mercer International financial report.