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Mar 31, 2022
Mercer Q1 2022 Earnings Report
Mercer International Inc. reported increased operating EBITDA and net income driven by strong sales volumes and increased pricing.
Key Takeaways
Mercer International Inc. reported a strong first quarter in 2022, with record quarterly revenues in pulp, lumber, and energy. Operating EBITDA increased to $154.5 million, and net income reached $88.9 million ($1.35 per basic share). The results were driven by strong sales volumes, increased pricing in pulp, lumber, and energy, and sales of surplus energy.
First quarter net income of $88.9 million and Operating EBITDA of $154.5 million.
Operating EBITDA increased to $154.5 million from $82.0 million in the first quarter of 2021.
Net income was $88.9 million, or $1.35 per basic share and $1.34 per diluted share, compared to $5.9 million, or $0.09 per share, in the first quarter of 2021.
Total revenues in the first quarter of 2022 increased by approximately 44% to a record $592.7 million from $412.7 million in the same quarter of 2021.
Revenue by Segment
Forward Guidance
Mercer International anticipates continued upward pricing pressure on pulp prices, strong lumber prices, and strong energy demand and prices in Germany for the second quarter of 2022.
Positive Outlook
- Expect some continued upward pricing pressure on pulp prices as a result of current supply-demand dynamics.
- Lumber prices in the United States are generally expected to remain at historically strong levels into the summer.
- Expect strong energy demand and prices in Germany to continue in the second quarter of 2022.
- 2022 capital expenditures are on track to total approximately $175 to $200 million.
- The CLT Facility will be a key foundation of our solid wood business.
Challenges Ahead
- Global logistics challenges continue to impact our business primarily with regards to North American rail traffic which led to us having to slow production at our Canadian pulp mills.
- Higher costs for key inputs including fiber, energy and chemicals.
- Per unit fiber costs will increase in the second quarter of 2022 due to continued strong demand.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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