Resolute Forest Products Inc. has said its tissue division incurred an operating loss of $9m in its second quarter results, in line with the first quarter result.
The average transaction price for the sector increased by $84 per short tonne, or 4%, on rising market pricing.
Shipments were 1,000 short tonnes higher and finished goods inventory fell by 2,000 short tonnes.
The delivered cost increased by $126 per short tonne, or 6%, mostly due to higher market pulp prices. EBITDA in the segment fell by $1m to a negative $5m.
In market pulp, operating income for the segment was $41m in the second quarter, $19m higher than in the prior quarter.
The average transaction price increased by $117 per metric tonne, or 14%, due to stronger market conditions.
Shipments were 29,000 metric tonnes higher, while EBITDA in the segment improved by $22m to $48m.
Across the group, Resolute reported net income for the quarter of $256m compared to net income of $268m year-on-year.
Sales were $1,058m, a decrease of $82m from the year-ago period.
Operating income of $217m in the quarter compared to $235m in the first quarter; the $18m variation mainly reflects higher shipments across all segments, more than offset by higher manufacturing costs, mainly related to fibre and maintenance costs as well as energy prices.
The business said the overall impact of pricing was “neutral”, as higher realised transaction prices in the pulp and paper segments were offset by lower average transaction prices in the wood products segment.
In July, Resolute and Paper Excellence Group, through its wholly-owned subsidiary Domtar Corporation, announced they have entered into an agreement under which the latter will acquire all of the outstanding common shares of Resolute stock.
The company expects the transaction to close in the first half of 2023.