Conifex Timber Inc. (TSX-V:CFF) has posted a much-improved net income of $9.5 million in 2013, compared with a net loss of $16.2 million in 2012, the company reports in its 2013 fourth-quarter financials.
The lumber company – which is in the process of diversifying into bioenergy – reports $1.1 million in net income for Q4 2013, compared with a net loss of $100,000 in Q3 2013 and a net loss of $3.6 million in Q4 2012.
Conifex had increased sales overall in 2013 compared with 2012, due to increased lumber sales and better prices.
The company reports total sales of $259.6 million in 2013, compared with $217.6 million in 2012.
Lumber shipments were stronger in 2013 than in 2012, generating net income of $9.5 million in 2013, compared with a net loss of $16.2 million in 2012.
The company reports a 13% increase in revenue from lumber in Q4 2013 compared with Q3. That increase was despite a 13% dip in the volume of lumber shipped in that quarter compared with Q3 2013 and Q4 2012.
The decrease in lumber volumes was offset by stronger prices and a weaker Canadian dollar, resulting in a 14% quarter-over-quarter increase in benchmark prices for the fourth quarter, and a 17% increase over Q4 2012.
On the energy side of its business, Conifex provided an update on its new bioenergy plant in Mackenzie. The project stalled in 2012 due a lack of financing.
Construction resumed in September 2013 after the company firmed up $102.7 million in financing for the project.
The new plant will use wood waste from its two Mackenzie sawmills to generate up to 36 megawatts of power – enough to power 24,000 homes.
“The project is currently on budget and proceeding as scheduled, with an expected commercial operation date in the third quarter of 2014,” the company reports.
“The company expects the successful completion of the project will contribute to cash flow by providing a consistent source of revenue from the fixed price electricity purchase agreement with BC Hydro and will enhance the long-term competitiveness of the Mackenzie sawmilling site.”
