NANAIMO – Net income for Western Forest Products in 2022 was $61.8 million, the forestry company has announced.
Net income was $202.8 million for 2021, with the 2022 results impacted by an incremental $54.1 million in stumpage expenses, $8.6 million in freight increases, and $9.1 million for higher export taxes, combined with weaker product pricing.
For the fourth quarter of 2022, the net loss was $21.4 million, down from net income of $6.6 million in the third quarter, and $28.5 million in the fourth quarter of 2021.
Highlights for the last year included successfully integrating the recently acquired Calvert assets into WFP Engineered Products LLC, returning $.6.9 million to shareholders, maintaining liquidity of $249.8 million, and releasing Sustainability and Carbon Accounting Reports.
Lumber revenue decreased 18% compared to the fourth quarter of last year. WFP’s average realized lumber price was $1,420 per thousand board feet, a decrease of 13% from the fourth quarter of last year. Price realization was impacted by a reduction in the percentage of specialty shipments to 40% from 56% in the fourth quarter of last year, partly offset by the benefit of a weaker average Canadian to US Dollar exchange rate. The average CAD to USD exchange rate fell by 7% as compared to the same period last year.
Log revenue was $54.9 million, an increase of 12% from the fourth quarter last year driven by a 21% increase in the average realized BC log price and a slightly stronger sales mix. Market-related operating curtailments limited the harvest of logs and inventory available for sale in the fourth quarter of 2022, but shipments declined by only 3% year-over-year as the harvest in the comparable period was impacted by weather.
By-products and other revenue were $16.4 million, an increase of $5.4 million as compared to the same period last year, primarily resulting from harvesting services provided to third parties. Chip price realizations improved as a result of mix and increased prices.
On February 16, the WFP appointed Noordin Nanji and Peter Wijnbergeen to the Board, and made Daniel Nocente, a director since 2014 as Chair, succeeding Michael Waites, who resigned.
By Mark MacDonald
