Conifex First Quarter a Match for Last Year
Prince George, B.C.- Conifex is reporting net income of $1.6 million in the first quarter, which was the same as the net income recorded in the same period last year.
Conifex notes housing starts in the U.S. were down in the first quarter which contributed to a decline in lumber shipments. Shipments were down by 16% from the previous quarter, but up by 18% over the same period in 2014 when a shortage of railcars and a strike at the Vancouver port impacted shipments.
The company expects shipments throughout North America to remain “challenging and benchmark prices will remain relatively weak until U.S. housing construction activity gains sufficient momentum to sustain higher demand levels for softwood lumber.”
A successful 72 hour test of the power generating plant in Mackenzie means Conifex is able to meet its contract obligations with BC Hydro to start selling power to the grid this month. The company says management will stay “focused on operating the power generation facility to meet the contracted volumes under the Electricity Purchase Agreement (EPA).”
While not giving any specifics, the Company says it believes it is well positioned to “undertake a capital expenditure program designed to further improve lumber segment performance.”