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Mercer(MERC) - 2024 Q4 - Annual Results
MERCMercer(MERC)2025-02-20 21:34

Financial Performance - Fourth quarter 2024 Operating EBITDA increased to 99.2million,upfrom99.2 million, up from 21.1 million in Q4 2023 and 50.5millioninQ32024[2][6][17]−NetincomeforQ42024was50.5 million in Q3 2024[2][6][17] - Net income for Q4 2024 was 16.7 million (0.25pershare),asignificantrecoveryfromanetlossof0.25 per share), a significant recovery from a net loss of 87.2 million (negative 1.31pershare)inQ42023[3][6]−Fullyear2024OperatingEBITDAroseto1.31 per share) in Q4 2023[3][6] - Full year 2024 Operating EBITDA rose to 243.7 million, compared to a loss of 242.1millionin2023[6]−OperatingEBITDAincreasedto242.1 million in 2023[6] - Operating EBITDA increased to 243.7 million in 2024 from 17.5millionin2023,drivenbyhighersalesrealizationsinpulp,manufacturedproducts,andlumber[36]−OperatingincomefortheyearendedDecember31,2024,was17.5 million in 2023, driven by higher sales realizations in pulp, manufactured products, and lumber[36] - Operating income for the year ended December 31, 2024, was 15.0 million, compared to a loss of 188.8millionin2023[50]RevenueGrowth−TotalrevenuesforQ42024increasedbyapproximately4188.8 million in 2023[50] Revenue Growth - Total revenues for Q4 2024 increased by approximately 4% to 488.4 million from 470.5millioninQ42023,drivenbyhigherpulpsalesrealizations[15]−PulprevenuesinQ42024increasedto470.5 million in Q4 2023, driven by higher pulp sales realizations[15] - Pulp revenues in Q4 2024 increased to 351.2 million from 340.7millioninQ42023,withaverageNBSKpulpsalesrealizationsupapproximately12340.7 million in Q4 2023, with average NBSK pulp sales realizations up approximately 12% to 794 per ADMT[21][22] - Solid wood segment revenues increased by approximately 6% to 111.6millioninQ42024,primarilyduetohigherlumberandbiofuelsrevenues[29]−LumberrevenuesinQ42024rosebyapproximately23111.6 million in Q4 2024, primarily due to higher lumber and biofuels revenues[29] - Lumber revenues in Q4 2024 rose by approximately 23% to 58.6 million from 47.8millioninQ42023,drivenbyhighersalesrealizationsandvolumes[30]−PulpsegmentrevenuesforQ42024were47.8 million in Q4 2023, driven by higher sales realizations and volumes[30] - Pulp segment revenues for Q4 2024 were 375.5 million, compared to 364.2millioninQ42023,whilesolidwoodsegmentrevenueswere364.2 million in Q4 2023, while solid wood segment revenues were 111.6 million in Q4 2024, up from 105.4millioninQ42023[45]CostManagement−In2024,costsandexpensesdecreasedbyapproximately7105.4 million in Q4 2023[45] Cost Management - In 2024, costs and expenses decreased by approximately 7% to 2,028.4 million from 2,182.6millionin2023,primarilyduetolowerperunitproductioncostsandforeignexchangegains[35]−Long−termdebtdecreasedto2,182.6 million in 2023, primarily due to lower per unit production costs and foreign exchange gains[35] - Long-term debt decreased to 1.47 billion in 2024 from 1.61billionin2023,areductionofapproximately81.61 billion in 2023, a reduction of approximately 8%[52] - The company reduced long-term debt by over 100 million in Q4 2024, focusing on debt reduction as a key goal moving forward[12][14] Liquidity and Assets - As of December 31, 2024, total liquidity was approximately 488.6million,consistingof488.6 million, consisting of 184.9 million in cash and cash equivalents and 303.7millionavailableunderrevolvingcreditfacilities[37]−Totalassetsdecreasedto303.7 million available under revolving credit facilities[37] - Total assets decreased to 2,262.9 million in 2024 from 2,662.6millionin2023,whiletotalshareholders′equityfellto2,662.6 million in 2023, while total shareholders' equity fell to 429.8 million from 635.4million[38]−Cashandcashequivalentsattheendof2024were635.4 million[38] - Cash and cash equivalents at the end of 2024 were 184.9 million, down from 314.0millionin2023,adecreaseof41314.0 million in 2023, a decrease of 41%[54] - Inventory levels decreased to 361.7 million in 2024 from 414.2millionin2023,areductionofabout13414.2 million in 2023, a reduction of about 13%[52] Future Outlook - The company expects modestly higher softwood pulp sales realizations in Q1 2025 due to stable demand and global supply constraints[4] - The company expects to achieve further synergies from the Torgau acquisition as market conditions improve[35] Dividends - A quarterly dividend of 0.075 per share is scheduled for payment on April 2, 2025, subject to Board approval[39] - The company declared dividends of 0.075percommonshareforbothQ42024andQ42023,maintainingthesamelevel[50]ProductionandSales−LumberproductioninQ42024was114.7millionboardfeet,withsalesof123.6millionboardfeet,indicatingstrongdemand[47]−Biofuelsproductionin2024was160.4thousandtonnes,withsalesof184.4thousandtonnes,showinganincreasefrom144.8thousandtonnesin2023[47]PriceChanges−TheaverageNBSKpulppriceinNorthAmericawas0.075 per common share for both Q4 2024 and Q4 2023, maintaining the same level[50] Production and Sales - Lumber production in Q4 2024 was 114.7 million board feet, with sales of 123.6 million board feet, indicating strong demand[47] - Biofuels production in 2024 was 160.4 thousand tonnes, with sales of 184.4 thousand tonnes, showing an increase from 144.8 thousand tonnes in 2023[47] Price Changes - The average NBSK pulp price in North America was 1,687 per ADMT in Q4 2024, compared to 1,312perADMTinQ42023,reflectingasignificantpriceincrease[47]Impairments−Thecompanyreportedanimpairmentof1,312 per ADMT in Q4 2023, reflecting a significant price increase[47] Impairments - The company reported an impairment of 34.3 million related to goodwill in 2024, which was not present in 2023[54]