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Cision Canada
2 days ago
- Business
- Cision Canada
TIDEWATER RENEWABLES LTD. ANNOUNCES SECOND QUARTER 2025 RESULTS
CALGARY, AB, Aug. 14, 2025 /CNW/ - Tidewater Renewables Ltd. (" Tidewater Renewables" or the " Corporation") (TSX: LCFS) is pleased to announce that it has filed its condensed interim consolidated financial statements and Management's Discussion and Analysis (" MD&A") for the three and six months ended June 30, 2025. SECOND-QUARTER HIGHLIGHTS During the second quarter of 2025, the Corporation reported net income of $13.0 million, a 165% increase over the second quarter of 2024, and a 150% increase over the first quarter of 2025. Tidewater Renewables generated Adjusted EBITDA (1) of $10.7 million during the second quarter of 2025, a 63% decrease over the second quarter of 2024, and a 338% increase over first quarter 2025. During the quarter, Tidewater Renewables successfully advanced its commercial strategy by securing contracted offtakes for over 70% of forecasted production for the second half of 2025. The remaining production is expected to be sold into the spot market, where current conditions present an opportunity to capture additional value. During the quarter the Corporation increased the available capacity under its senior credit facility by $7.0 million, driven by improved cash flows from newly contracted offtakes and improved emission credit economics. On May 7, 2025, the Corporation extended the maturity date of the Corporation's senior credit facility from February 28, 2026, to February 28, 2027. SUBSEQUENT EVENT As part of ongoing development efforts, the Corporation has received support from the Government of British Columbia to amend the existing initiative agreement in connection with the Corporation's sustainable aviation fuel ("SAF") project. The proposed amendment would deliver increased benefits through an expansion of BC LCFS Credits to be awarded under such agreement. Selected financial and operating information are outlined below and should be read with the Corporation's condensed interim consolidated financial statements and related MD&A for the three and six months ended June 30, 2025, which are available under the Corporation's profile on SEDAR+ at and on its website at Financial Highlights (1) Refer to "Non-GAAP and Other Financial Measures". OUTLOOK AND CORPORATE UPDATE Regulatory engagement and commercial momentum Tidewater Renewables continues to advocate for a fair and competitive regulatory framework that supports the growth of Canada's renewable fuels industry. The Corporation remains highly encouraged by the modifications to the Low Carbon Fuels Act the Government of British Columbia announced on February 27, 2025, which increased the renewable fuel requirement for diesel from 4% to 8% for the 2025 compliance period. Effective April 1, 2025, the modification also mandated that the renewable fuel content be produced within Canada (collectively, the "Amendments"). These changes are strongly aligned with Tidewater Renewables' strategic vision and reinforce the government's commitment to strengthening Canadian clean fuel production. Since the introduction of the Amendments, the Corporation has experienced a significant increase in commercial activity, reflecting rising demand for Canadian-produced renewable diesel and improved emissions credit economics. As a result of this favourable regulatory shift and the Corporation's ongoing marketing efforts, Tidewater Renewables has successfully secured contracted offtakes for over 70% of forecasted production for the second half of 2025. The majority of these new offtake agreements are priced based on U.S. import parity benchmarks, aligning contract pricing with prevailing U.S. market values and contributing to enhanced market competitiveness. The remaining production is expected to be sold into the spot market, where pricing remains favourable, providing additional upside potential. These positive developments validate Tidewater Renewables' commercial strategy and underscore its position as a leading, reliable supplier of renewable diesel in the Canadian market. Management believes the Corporation is well-positioned to benefit from the ongoing regulatory tailwinds in the low-carbon fuels sector and remains focused on maximizing value creation for shareholders. Trade action On May 5, 2025, the Canadian International Trade Tribunal (the "Tribunal") issued a decision to terminate its preliminary injury inquiry in respect of the Corporation's countervailing (anti-subsidy) and anti-dumping duty complaint relating to imports of renewable diesel from the U.S. (the "Investigation"). The Tribunal subsequently released reasons for its decision on May 23, 2025. The Tribunal's decision ends the Investigation arising from the complaint filed by the Corporation with the Canada Border Services Agency ("CBSA") on December 30, 2024 and initiated by the CBSA on March 6, 2025. The Corporation has reviewed the Tribunal's reasons for its decision and is currently evaluating its available options and legal remedies. This includes, but is not limited to, the potential for filing a new complaint with the CBSA or considering other actions to address the impact of these U.S. renewable diesel imports on the Canadian renewable fuels market. SAF development update Tidewater Renewables continues to advance the 6,500 bbl/d SAF project in British Columbia, with the front-end engineering design work now complete. As part of this ongoing development, the Corporation is pleased to report that it has received approval from the Government of British Columbia to amend the existing initiative agreement to provide further support in the form of additional BC LCFS credits. These additional credits are specifically intended to fund the further work required to reach a final investment decision for the project, which remains under evaluation and is now targeted for 2026. While Tidewater Renewables remains optimistic about the project's potential, the decision to proceed with the SAF project is contingent upon the execution of long-term offtake agreements, provincial and federal government support, and obtaining committed financing. HDRD Complex During the second quarter of 2025, the renewable diesel & renewable hydrogen complex (the "HDRD Complex") achieved an average utilization rate of 2,164 bbl/d, or 72% of design capacity. This compares to 2,925 bbl/d, or 98% of design capacity, during the same period in the prior year. During the six months ended June 30, 2025, the HDRD Complex achieved an average utilization rate of 2,201 bbl/d, or 73% of design capacity, compared to 2,520 bbl/d, or 84% of design capacity, in the same period of 2024. Utilization during the second quarter of 2025 remained relatively consistent with the first quarter of 2025. The decrease during the three and six months ended June 30, 2025, compared to the same periods in 2024 was primarily attributable to a minor fire incident on April 1, 2025, at the main renewable diesel process unit within the HDRD Complex. The fire was promptly contained, with the affected area safely isolated and stabilized. As a result, operations at the HDRD Complex were temporarily suspended, but successfully resumed on April 14, 2025. Following the restart, utilization rates steadily improved, supported by disciplined ramp-up procedures and robust operational oversight. Tidewater Renewables continues to expect the HDRD Complex to achieve an average throughput of between 2,200 to 2,400 bbl/d for the full year 2025, inclusive of the planned turnaround activity during the third quarter of 2025, supported by ongoing operational optimizations and improving market conditions. Capital Program Tidewater Renewables maintenance capital for the year is estimated to be approximately $8.0 million to $10.0 million, allocated primarily to the planned turnaround activity for the HDRD Complex in the third quarter of 2025. The planned turnaround is expected to last three weeks and have a minimal impact on sales as renewable diesel will continue to be sold from inventory during the turnaround. CONFERENCE CALL In conjunction with the earnings release, investors will have the opportunity to listen to Tidewater Renewables' senior management review its second quarter 2025 results via a joint conference call with its controlling shareholder, Tidewater Midstream and Infrastructure Ltd., on Thursday, August 14, 2025 at 10:00 am MDT (12:00 pm EDT). A question and answer session for analysts will follow management's presentation. To join the conference call without operator assistance, please register here approximately 5 minutes in advance to receive an automated call-back when the session begins. Alternatively, you can dial 888-510-2154 (toll-free in North America) or 437-900-0527 to reach a live operator who will place you into the call. For those accessing the call via Cision's investor website, we suggest logging in at least 15 minutes prior to the start of the live event. For those dialing in, participants should ask to be joined into the Tidewater Renewables Ltd. earnings call. A live audio webcast of the conference call will be available here, and archived for 90 days. ABOUT TIDEWATER RENEWABLES Tidewater Renewables is an energy transition company. The Corporation is focused on the production of low carbon fuels, primarily renewable diesel. The Corporation was created in response to the growing demand for renewable fuels in North America and to capitalize on its potential to efficiently turn a wide variety of renewable feedstocks (such as tallow, used cooking oil, distillers corn oil, soybean oil, canola oil and other biomasses) into low carbon fuels. Tidewater Renewables' objective is to become a leading Canadian renewable fuel producer. The Corporation is pursuing this objective through the ownership, development, and operation of clean fuels projects and related infrastructure, that utilize existing proven technologies. Additional information relating to Tidewater Renewables is available on SEDAR+ at and at NON-GAAP AND OTHER FINANCIAL MEASURES Throughout this press release and in other materials disclosed by the Corporation, Tidewater Renewables uses a number of non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures when assessing its results and measuring overall performance. The intent of non-GAAP measures and non-GAAP ratios is to provide additional useful information to investors and analysts. These non-GAAP measures and non-GAAP ratios do not have standardized meanings prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other entities. As such, these measures should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with GAAP. Except as otherwise indicated, these non-GAAP financial measures and non-GAAP ratios will be calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods. For more information with respect to the Corporation's non-GAAP measures, non-GAAP ratios, capital management measures and supplementary financial measures see the "Non-GAAP and Other Financial Measures" section of Tidewater Renewables' MD&A which is available on SEDAR+ at Non-GAAP Financial Measures The non-GAAP financial measures used by the Corporation are Adjusted EBITDA and distributable cash flow. Adjusted EBITDA Adjusted EBITDA is calculated as income (or loss) before finance costs, taxes, depreciation, share-based compensation, unrealized gains and losses on derivative contracts, transaction costs, and other items considered non-recurring in nature, plus the Corporation's proportionate share of Adjusted EBITDA in its equity investment. Adjusted EBITDA is used by management to set objectives, make operating and capital investment decisions, monitor debt covenants and assess performance. Tidewater Renewables also believes Adjusted EBITDA is a measure widely used by securities analysts, investors, lending institutions and others to evaluate the financial performance of the Corporation. From time to time, the Corporation issues guidance on this key measure. As a result, Adjusted EBITDA is presented as a relevant measure in this press release and the MD&A to assist analysts and readers in assessing the performance of the Corporation as seen from management's perspective. Investors should be cautioned that Adjusted EBITDA should not be construed as an alternative to net (loss) income, net cash provided by operating activities or other measures of financial results determined in accordance with GAAP as an indicator of the Corporation's performance and may not be comparable to companies with similar calculations. The following table reconciles net loss, the nearest GAAP measure, to Adjusted EBITDA: Distributable Cash Flow Distributable cash flow is calculated as net cash provided by (used in) operating activities before changes in non-cash working capital plus transaction costs, non-recurring expenses, and after any expenditures that use cash from operations. Changes in non-cash working capital are excluded from the determination of distributable cash flow because they are primarily the result of seasonal fluctuations or other temporary changes, and are generally funded with short-term debt or cash flows from operating activities. Maintenance capital expenditures, including turnarounds, are deducted from distributable cash flow as they are ongoing recurring expenditures which are funded from operating cash flows. Transaction costs are added back as they vary significantly quarter to quarter based on the Corporation's acquisition and disposition activity. Distributable cash flow also excludes non-recurring transactions that do not reflect Tidewater Renewables' ongoing operations. Management believes distributable cash flow is a useful metric for investors when assessing the amount of cash flow generated from the Corporation's normal operations. These cash flows are relevant to the Corporation's ability to internally fund growth projects, alter its capital structure, or distribute returns to shareholders. The following table reconciles net cash provided by (used in) operating activities, the nearest GAAP measure, to distributable cash flow: Non-GAAP Financial Ratios The Corporation uses the following non-GAAP financial ratios to present aspects of its financial performance or financial position. Distributable cash flow per common share (basic and diluted) Distributable cash flow per common share is calculated as distributable cash flow, a non-GAAP financial measure, over the weighted average number of common shares outstanding for the period. Management believes that distributable cash flow per common share provides investors an indicator of funds generated from the business that could be allocated to each shareholder's equity position. Capital Management Measures Net Debt Net debt is used by the Corporation to monitor its capital structure and financing requirements. It is also used as a measure of the Corporation's overall financial strength. Net debt is defined as amounts owing under the senior credit facility and second lien credit facility, less cash. Net debt excludes working capital, lease liabilities and derivative contracts as the Corporation monitors its capital structure based on net debt to Adjusted EBITDA. The following table reconciles net debt: Supplementary Financial Measures Growth Capital Growth capital expenditures are defined as expenditures which are recoverable, incrementally increase cash flow or the earning potential of assets, expand the capacity of current operations, or significantly extend the life of existing assets. This measure can be used by investors to assess the Corporation's discretionary capital spending. Maintenance Capital Maintenance capital expenditures are generally defined as expenditures that support and/or maintain the current capacity, cash flow or earning potential of existing assets without the characteristic benefits associated with growth capital expenditures. These expenditures include major inspections and overhaul costs that are required on a periodic basis. This measure can be used by investors to assess the Corporation's non-discretionary capital spending. Forward-Looking Information Certain statements contained in this press release constitute forward-looking statements and forward-looking information (collectively referred to herein as, "forward-looking statements") within the meaning of applicable Canadian securities laws. Such forward-looking statements relate to future events, conditions or future financial performance of Tidewater Renewables based on future economic conditions and courses of action. All statements other than statements of historical fact may be forward-looking statements. Such forward-looking statements are often, but not always, identified by the use of any words such as "seek", "anticipate", "budget", "plan", "continue", "forecast", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "will likely result", "are expected to", "will continue", "is anticipated", "believes", "estimated", "intends", "plans", "projection", "outlook" and similar expressions. These statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. In particular, this press release contains forward-looking statements pertaining to, but not limited to, the following: the percentage of forecasted production subject to offtake agreements; the Corporation's advocacy for a fair and competitive regulatory framework that supports the growth of Canada's renewable fuels industry; the expected effect of the Amendments on the emissions credit markets and the broader Canadian renewable fuels industry; the Corporation's view of regulatory developments in the low-carbon fuels sector; the Corporation's assessment of its options and legal remedies following the Tribunal's decision; the Corporation's pursuit of competitive fairness in the renewable diesel industry; the development of the SAF project, including the timing of a final investment decision and the pursuit of long-term offtake agreements in relation thereto; the Corporation's expectations of average throughput at the HDRD Complex for 2025; the timing of turnaround activities at the HDRD Complex; expectations regarding the Corporation's capital program for 2025; and the sale of renewable diesel from inventory during the turnaround at the HDRD Complex and the effect of the turnaround at the HDRD Complex on sales of renewable diesel. Although the forward-looking statements contained in this press release are based upon assumptions which management of the Corporation believes to be reasonable, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this press release, the Corporation has made assumptions regarding, but not limited to: Tidewater Renewables' ability to execute on its business plan; the timely receipt of all third party, governmental and regulatory approvals and consents sought by the Corporation; general economic and industry trends; operating assumptions relating to the Corporation's projects; expectations around level of output from the Corporation's projects, including assumptions relating to feedstock supply levels; the ownership and operation of Tidewater Renewables' business; regulatory risks; the expansion of production of renewable fuels by competitors; future commodity and renewable energy prices; sustained or growing demand for renewable fuels; the ability for the Corporation to successfully turn a wide variety of renewable feedstocks into low carbon fuels; changes in the credit-worthiness of counterparties; the Corporation's future debt levels, financial stability, future debt reduction initiatives, and its ability to repay its debt when due; the Corporation's ability to continue to satisfy the terms and conditions of its credit facilities; the continued availability of the Corporation's credit facilities; the Corporation's ability to obtain additional debt and/or equity financing on satisfactory terms; the Corporation's ability to manage liquidity by working with its current capital providers and other sources and through the sale of emissions credits and renewable diesel; the market, demand and pricing for emissions credits; foreign currency, exchange, inflation and interest rate risks; the availability of options and legal remedies following the Tribunal's decision; the effect of countervailing (anti-subsidy) and anti-dumping duties on the renewable diesel market and the related emission credit market; and the other assumptions set forth in the Corporation's most recent annual information form available under the Corporation's profile on SEDAR+ at The Corporation's actual results could differ materially from those anticipated in the forward-looking statements, as a result of numerous known and unknown risks and uncertainties and other factors including, but not limited to: changes in supply and demand for, and the pricing of low carbon products and emissions credits; risks in relation to no duties being imposed or other actions taken by the CBSA and/or the Tribunal as a result of an amended or new complaint by the Corporation in connection with the importation of renewable diesel from the U.S., or such duties or actions are not imposed or taken on a timely basis; general economic, political, market and business conditions, including fluctuations in interest rates, foreign exchange rates, supply chain pressures, inflation, stock market volatility and supply/demand trends; risks and liabilities inherent in the operations related to renewable energy production and storage infrastructure assets, including the lack of operating history and risks associated with forecasting future performance; competition for, among other things, third-party capital, acquisition opportunities, requests for proposals, materials, equipment, labour and skilled personnel; risks related to the environment and changing environmental laws in relation to the operations conducted with the Corporation's capital projects; and the other risks set forth in the Corporation's most recent annual information form available under the Corporation's profile on SEDAR+ at The foregoing lists are not exhaustive. Additional information on these and other factors which could affect the Corporation's operations or financial results are set forth in the Corporation's most recent annual information form, its MD&A and in other documents on file with the Canadian Securities regulatory Administrators available under the Corporation's profile on SEDAR+ at Management of the Corporation has included the above summary of assumptions and risks related to forward-looking statements provided in this press release in order to provide holders of common shares in the capital of the Corporation with a more complete perspective on the Corporation's current and future operations and such information may not be appropriate for other purposes. The Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, what benefits the Corporation will derive from them. Readers are therefore cautioned that the foregoing list of important factors is not exhaustive, and they should not unduly rely on the forward-looking statements included in this press release. Tidewater Renewables does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable securities law. All forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Further information about factors affecting forward-looking statements and management's assumptions and analysis thereof is available in the Corporation's most recent annual information form and other filings made by the Corporation with Canadian provincial securities commissions available under the Corporation's profile on SEDAR+ at The financial outlook information contained in this press release is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Additionally, the financial outlook information contained in this press release is subject to the risk factors described above in respect of forward-looking information generally as well as any other specific assumptions and risk factors in relation to such financial outlook noted in this press release. Accordingly, readers are cautioned that the financial outlook information contained in this press release should not be used for purposes other than for which it is disclosed herein. The financial outlook information contained in this press release was approved by management as of the date hereof and was provided for the purpose of providing further information about Tidewater Renewables' current expectations and plans for the future.
Business Wire
4 days ago
- Business
- Business Wire
GreenFirst Reports Financial Results for the Second Quarter of 2025
TORONTO--(BUSINESS WIRE)--GreenFirst Forest Products Inc. (TSX: GFP) ('GreenFirst' or the 'Company') announced results for the second quarter and two quarters ended June 28, 2025. The Company's interim financial statements ("Financial Statements") and related Management's Discussion and Analysis ("MD&A") for the second quarter and two quarters ended June 28, 2025 are available on GreenFirst's website at and on SEDAR+ at Highlights Q2 2025 net loss from continuing operations was $9.6 million or $0.42 loss per share (diluted), compared to net income of $0.9 million or $0.04 earnings per share (diluted) in Q1 2025. Adjusted EBITDA from continuing operations for Q2 2025 was negative $5.2 million compared to positive $5.1 million in Q1 2025. Benchmark lumber prices declined during the quarter, resulting in an average realized lumber price of $712 per thousand board feet (mfbm) in Q2 2025, down from $729/mfbm in Q1 2025. During Q2 2025, the Company continued collaboration with the Chapleau large log line supplier to ensure the project remains on schedule and within budget. This counter-cyclical investment is supported by anticipated government funding expected in the coming months. The new production line is projected to enhance productivity and reduce unit costs, delivering significant EBITDA benefits starting in 2026 and beyond. On August 8, 2025, the US DOC's Final Determination of its Sixth Administrative Review with respect to imports of softwood lumber products from Canada for 2023 assessed a duty rate higher than what the Company was assessed in 2023. Based on this final rate, calculated to be 35.19%, the Company will record a non-cash duty expense of approximately US$19 million ($26 million CAD), plus accrued interest, in the third quarter of 2025 related to the increase in ADD and CVD rates. Cash deposits are paid at the most recent final ADD and CVD duty rates. Amounts paid to date remain held in trust by the US DOC. GreenFirst Reports Q2 Results Amid Market Uncertainty "Despite market uncertainty, we finished Q2 2025 with higher sales volumes compared to Q1 2025 - approximately 110,000 mfbm versus 90,000 mfbm. We recorded a negative EBITDA of $5.2 million in Q2 2025, primarily due to lower selling prices and higher lumber costs associated with inventory produced in Q1 2025," said Joel Fournier, GreenFirst's Chief Executive Officer. "On a positive note, GreenFirst set a new high during the quarter in terms of production records with volume reaching 115,000 mfbm, the highest in Company history for continuing operations. Looking ahead, we will maintain a prudent approach, preserve a solid balance sheet, and remain focused on the factors we can control - improving operational effectiveness and driving long-term performance.' Financial Highlights The following selected financial information is from the Company's financial statements and MD&A: (In thousands of CAD, except per share amounts) June 28, March 29, June 29, For the quarter ended 2025 2025 2024 (4 ) Net sales from continuing operations (3) $ 84,538 $ 71,830 $ 69,650 Operating earnings (loss) from continuing operations (8,828 ) 1,411 (9,650 ) Net income (loss) (9,593 ) 920 (14,529 ) Net income (loss) from continuing operations (9,593 ) 920 (9,946 ) Basic earnings (loss) per share (0.42 ) 0.04 (0.82 ) Basic earnings (loss) per share from continuing operations (0.42 ) 0.04 (0.56 ) Diluted earnings (loss) per share (0.42 ) 0.04 (0.82 ) Diluted earnings (loss) per share from continuing operations (0.42 ) 0.04 (0.56 ) Adjusted EBITDA from continuing operations (1)(2) $ (5,161 ) $ 5,060 $ (6,075 ) Expand (In thousands of CAD) June 28, December 31, As at 2025 2024 Total assets $ 216,080 $ 220,466 Total liabilities 77,306 74,850 Total shareholders' equity $ 138,774 $ 145,616 Expand 1 Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in the Company's MD&A. 2 Non-GAAP Adjusted EBITDA before one-time duties recoveries for the second quarter and two quarters ended June 28, 2025 was negative $5.2 million and negative $0.1 million respectively, compared to negative $6.1 million and $0.2 million respectively, for the second quarter and two quarters ended June 29, 2024. 3 Includes net sales to external parties. 4 Certain prior period amounts have been restated as a result of a change in presentation of the Company's Financial Statements for continuing and discontinued operations under IFRS. Please refer to Note 4 - Discontinued Operations, in the Company's Financial Statements for further information. Net sales in Q2 2025 were $84.5 million, representing an approximate 18% increase compared to Q1 2025. This increase was primarily driven by higher shipments during the quarter, partially offset by lower realized prices. Cost of sales were $80.1 million, an increase of approximately 29% compared to Q1 2025. The increase in cost of sales was primarily due to higher shipment volumes during the quarter. Other Expenses Duties expense of $8.3 million in the second quarter of 2025 was higher than the first quarter of 2025 of $5.7 million due to higher shipments. During both quarters the Company was subject to a combined duty rate of 14.4%. SG&A expenses were $4.6 million in the second quarter of 2025 compared to $2.6 million in the first quarter of 2025, which was primarily due to non-cash compensation expenses in addition to higher non-recurring professional and legal services in the current period. Liquidity and Borrowings At June 28, 2025, the Company had $4.4 million in cash on hand and $39.8 million, less $8.1 million for standby letters of credit, of excess availability under its revolving portion of the credit facility. In addition, the Company also had access to $12.7 million remaining under its equipment financing portion of the credit facility. The Company had drawn down $12.5 million under its revolving portion of the credit facility and $12.3 million (net of repayments) under its equipment financing agreement as at June 28, 2025. Outlook The economic outlook for the lumber industry reflects a balance of ongoing challenges and emerging opportunities. Macroeconomic concerns are beginning to stabilize, which may support a recovery in lumber demand and pricing. In North America, the housing market is showing signs of recovery after recent volatility. Mortgage rates are expected to ease while price growth moderates in 2025, which should improve affordability for borrowers. This could provide relief to homeowners and support demand in new construction, remodeling, and renovation activity which are all key factors that are expected to continue driving lumber demand. However, it's hard to say for sure how much mortgage rates will go down and it is also possible they will rise due to the current economic uncertainty. Structural market dynamics are also contributing to longer-term demand fundamentals. A persistent shortage of housing inventory in the U.S., the aging of the existing housing stock, and demographic-driven demand are likely to support the lumber market both in the near and long term. In the short term, reduced lumber demand and conservative inventory management are creating supply-side pressures. Supply constraints persist, particularly in Western Canada due to wildfire impacts, regulatory harvest limits, and mill curtailments. While these factors mainly affect Western provinces, limited timber availability and transportation challenges also influence the broader Canadian lumber supply chain, including Ontario. These constraints contribute to ongoing tightness in lumber supply which could help stabilize or even support lumber prices in the coming months. Labour market constraints remain a key challenge for the industry, contributing to higher costs and occasional production disruptions. Inflationary pressures across North America have further increased the cost of critical inputs, placing additional strain on operational efficiency. Staffing challenges and tight wood supply are ongoing risks that could negatively impact production output and margins across the industry. Despite these pressures, continuous improvements in production and processing techniques are driving gains in efficiency and helping reduce costs. Companies with access to capital to invest in modern, efficient equipment are better positioned to enhance long-term competitiveness. A growing focus on environmental sustainability is also reshaping the industry landscape. Organizations that prioritize sustainable forest management and environmentally responsible operations are increasingly gaining favor among regulators, consumers, and investors. GreenFirst is aligned with this trend, producing high-quality lumber in a safe and responsible manner. We are committed to protecting our employees and the environment while creating long-term value for our stakeholders. Our renewable building materials sequester carbon and represent a natural solution in the global effort to combat climate change. Nonetheless, downside risks remain. Should broader economic conditions or employment levels weaken significantly, or if interest rates remain elevated for an extended period without sufficient adjustments in housing prices, affordability could remain strained. This scenario could suppress new home construction and, in turn, reduce near-term demand for lumber products. Our company, based in Ontario, primarily supplies SPF lumber products to the U.S. market. On a year-to-date basis, SPF lumber prices have rebounded in 2025, with benchmark prices increasing approximately 8-10%. Pricing strength is supported by constrained supply, elevated U.S. rebuilding demand (notably in wildfire-affected areas), and ongoing trade-related duties on Canadian exports. Similar to most Canadian softwood lumber exporters, our company faces combined anti-dumping and countervailing duties of approximately 34–35 % imposed by the U.S. Department of Commerce. Our SPF products have largely remained exempt from tariffs due to compliance with the United States-Mexico-Canada Agreement (USMCA), except for a two-day period in the first quarter of 2025. The actual impact of any current or future tariffs remains unknown and cannot be reasonably estimated at this time. Several factors will influence the outcome, including the effective date and duration of any new trade actions, potential changes in the amount, scope, or nature of the tariffs, and the possibility of countermeasures by the Canadian government. Additionally, any mitigating actions available to the Company or the broader industry may affect the overall impact. We continue to monitor developments closely and assess their potential implications for our operations and financial position. Reconciliation of Adjusted EBITDA References to EBITDA in this document are measures of earnings (loss) before interest and finance costs, income taxes, depreciation and amortization, while references to Adjusted EBITDA reflect EBITDA plus other non-operating costs such as impact of valuation changes on the Company's investments, loss on sale of assets and other non-operating losses. Management believes that certain lenders, investors, and analysts use EBITDA and Adjusted EBITDA as a common valuation measurement and to measure the Company's ability to service debt and meet other payment obligations. EBITDA and Adjusted EBITDA are not intended to replace net earnings (loss), or other measures of financial performance and liquidity reported in accordance with GAAP. For more information on non-GAAP measures, please see the Company's MD&A. 1 Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in the Company's MD&A. 2 Non-GAAP Adjusted EBITDA before one-time duties recoveries for the second quarter and two quarters ended June 28, 2025 was negative $5.2 million and negative $0.1 million respectively, compared to negative $6.1 million and $0.2 million respectively, for the second quarter and two quarters ended June 29, 2024. 3 Certain prior period amounts have been restated as a result of a change in presentation of the Company's Financial Statements for continuing and discontinued operations under IFRS. Please refer to Note 4 - Discontinued Operations, in the Company's Financial Statements for further information. Earnings Conference Call GreenFirst will host a conference call to review the Q2 2025 financial results on Wednesday, August 13, 2025 at 9:00am (Eastern). The live webcast of the earnings conference call can be accessed via web: and via phone: (+1) 416 764 8658 or (+1) 888 886 7786. A replay of the webcast and presentation slides will be available on GreenFirst's website following the conference call. About GreenFirst GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production. The Company owns four sawmills located in rich wood baskets proudly operating over six million hectares of FSC® certified public Ontario forest lands (FSC®-C167905). The Company believes that responsible forest practices, coupled with the long-term green advantage of lumber, provide GreenFirst with significant cyclical and secular advantages in building products. Forward Looking Information Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact are forward-looking statements. Forward looking statements are often identified by terms such as 'may', 'should', 'anticipate', 'expect', 'potential', 'believe', 'intend', 'estimate' or the negative of these terms and similar expressions. Forward-looking statements are based on certain assumptions and, while GreenFirst considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. In addition, forward-looking statements necessarily involve known and unknown risks, including those set out in GreenFirst's public disclosure record filed under its profile on Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. GreenFirst disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Hamilton Spectator
09-07-2025
- Business
- Hamilton Spectator
ISC to Release 2025 Second Quarter Financial Results on July 30, 2025
REGINA, Saskatchewan, July 09, 2025 (GLOBE NEWSWIRE) — Information Services Corporation (TSX:ISC) ('ISC' or the 'Company') advises that it will release its financial results for the second quarter ended June 30, 2025, on Wednesday, July 30, 2025, after market close. ISC's Unaudited Condensed Consolidated Interim Financial Statements and Notes and Management's Discussion and Analysis for the second quarter ended June 30, 2025, will be available on SEDAR+ at and our website at . An investor conference call will be held on Thursday, July 31, 2025, at 11:00 a.m. ET to discuss the results. Those joining the call on a listen-only basis are encouraged to join the live audio webcast, which will be available on ISC's website at . Participants who wish to ask a question on the live call may do so through the ISC website or by registering at: Once registered, participants will receive the dial-in numbers and their unique PIN number. When dialing in, participants will input their PIN and be placed into the call. While not required, it is recommended that participants join 10 minutes before the start time. A replay of the webcast will be available approximately 24 hours after the event on ISC's website . Media are invited to attend on a listen-only basis. About ISC® Headquartered in Canada, ISC is a leading provider of registry and information management services for public data and records. Throughout our history, we have delivered value to our clients by providing solutions to manage, secure and administer information through our Registry Operations, Services and Technology Solutions segments. ISC is focused on sustaining its core business while pursuing new growth opportunities. The Class A Shares of ISC trade on the Toronto Stock Exchange under the symbol ISC. Investor Contact Jonathan Hackshaw Senior Director, Investor Relations & Capital Markets Toll Free: 1-855-341-8363 in North America or 1-306-798-1137 Media Contact Jodi Bosnjak External Communications Specialist Toll Free: 1-855-341-8363 in North America or 1-306-798-1137
Yahoo
14-05-2025
- Business
- Yahoo
Lotus Creek Exploration Inc. Announces First Quarter 2025 Operating Results
Calgary, Alberta--(Newsfile Corp. - May 14, 2025) - Lotus Creek Exploration Inc. ("Lotus Creek" or the "Company") (TSXV: LTC) is pleased to provide the following first quarter operating results to shareholders. Lotus Creek's Interim Consolidated Financial Statements and related Management's Discussion and Analysis ("MD&A") for the period ended March 31, 2025 are available for review on Lotus Creek's website at and on QUARTERLY HIGHLIGHTS On February 5, 2025, Lotus Creek, Gear Energy Ltd. ("Gear") and an unrelated third-party (the "Third-Party") closed the previously announced plan of arrangement (the "Arrangement"). Under the Arrangement, Gear's producing oil and gas properties in Central Alberta and Southeast Saskatchewan and its evaluation and exploration properties in Tucker Lake, Alberta were acquired by Lotus Creek plus the Company received $21.5 million of working capital surplus. For the first quarter, the commercial operations of Lotus Creek are between February 5, 2025 and March 31, 2025 (the "Operating Period"). Lotus Creek invested a total of $9.6 million of capital during the first quarter. The Company maintains a strong balance sheet with a working capital surplus of $12.2 million at the end of the first quarter and access to ample liquidity through its undrawn $35.0 million Credit Facility. The Company drilled and completed its inaugural heavy oil well in its exploratory acreage at Tucker Lake, Alberta and completed two heavy oil wells in Tucker Lake that were acquired as per the Arrangement. These wells were operated temporarily to recover load fluid and were shut in after the fact. Lotus Creek is awaiting approval from the Alberta Energy Regulator for the facility license and anticipates approval during the second quarter of 2025. During the first quarter, the Company completed a 44 square mile 3D seismic program in Central Alberta and the data evaluation is currently ongoing. Lotus Creek plans to execute a Belly River drilling program in Central Alberta during the second half of 2025 with new volumes expected to come on-stream in the fourth quarter of 2025. Production for the first quarter of 2025 was 1,632 boe per day which includes 945 bbl per day of light oil, 252 bbl per day of NGLs and 2,609 mcf per day of natural gas and relate to the Operating Period. During the first quarter, Lotus Creek partially restarted a natural gas field in the Medicine Hat area. The field is currently producing 966 mcf per day. Adjusted funds from operations ("Adjusted FFO") for the first quarter of 2025 was $1.6 million. Adjusted FFO reflects that the Operating Period was only 55 days and not a full quarter. Commodity prices decreased in the first quarter driven by a lower WTI benchmark oil price due to trade and demand concerns and widened differentials. Lotus Creek will continue to monitor commodity prices and overall market conditions. See "Non-GAAP and Other Financial Measures" in this press release. LOTUS CREEK HIGHLIGHTS Lotus Creek is a Canadian exploration and production company with oil production in Central Alberta and Southeast Saskatchewan and exploration assets in Tucker Lake and Central Alberta. On February 5, 2025, Lotus Creek, Gear and the Third-Party closed the previously announced transformative Arrangement. Under the Arrangement, Gear's producing oil and gas properties in Central Alberta and Southeast Saskatchewan and its evaluation and exploration properties in Tucker Lake, Alberta were acquired by Lotus Creek plus the Company received $21.5 million of working capital to fund its exploration and development activities. In exchange, Lotus Creek issued 40.0 million common shares at $2.00 per share as consideration. Lotus Creek commenced commercial operations on close of the Arrangement. Business ModelLotus Creek is an oil weighted organic growth company. The objective is to be the fastest growing, fully funded, public junior oil and gas company in Canada. We will measure shareholder value creation by profitable growth in cashflow, production and producing reserves per debt adjusted share. Key Attributes High-quality, light sweet oil production base with long life reserves Proved Developed Producing ("PDP") reserves NPV-10 value $76 million after-tax Material upside in Wilson Creek and Tucker Lake assets with strong economics and capital efficiencies Multiple stacked oil reservoir zones, with open hole, multi-lateral and multi-stage fractured horizontal locations Well capitalized business model positioned to substantially grow in the coming years Working capital surplus of $12.2 million as at March 31, 2025 and a $35 million available credit facility The following table summarizes selected highlights for the three months ended March 31, 2025, and December 31, 2024. Three months ended(Cdn$ thousands, except per share, share and per boe amounts)Mar 31, 2025(2) Dec 31, 2024(3)FINANCIAL Adjusted funds from operations (1)1,619 (13 ) Per boe18.04 -Per weighted average basic share0.07 -Cash flows used in operating activities(443 )-Per boe(4.94 )-Per weighted average basic share(0.02 )-Net loss(489 )(13 ) Per weighted average basic share(0.02 )-Exploration and evaluation expenditures9,292 746Property, plant and equipment expenditures294 -Acquisitions80,147 -Net surplus (debt) (1)12,192 (759 ) Weighted average shares, basic (thousands)24,444 -Shares outstanding, end of period (thousands)40,000 - OPERATING Production Light oil (bbl/d)945 -Natural gas liquids (bbl/d)252 -Natural gas (mcf/d)2,609 - Total (boe/d)1,632 - Average realized prices Light oil ($/bbl)89.82 -Natural gas liquids ($/bbl)43.21 -Natural gas ($/mcf)2.23 - Netback ($/boe) Petroleum and natural gas sales62.27 -Royalties(9.07 )-Operating expenses(23.92 )-Transportation expenses(1.87 )- Operating netback (1)27.41 -General and administrative(9.24 )-Interest income0.78 -Interest and financing charges(0.91 )- (1) Adjusted funds from operations (including per boe and per weighted average basic share), net surplus (debt) and operating netback do not have any standardized meanings under Canadian generally accepted accounting principles ("GAAP") and therefore may not be comparable to similar measures presented by other entities. For additional information related to these measures, including a reconciliation to the nearest GAAP measures, where applicable, see "Non-GAAP and Other Financial Measures" in this press release.(2) The commercial operations of Lotus Creek for the first quarter of 2025 are between February 5, 2025 and March 31, 2025.(3) As Lotus Creek was incorporated on August 21, 2024, there is no comparative for the three months ended March 31, 2024. As such, the only comparative period is the three months ended December 31, 2024; however, no material commercial operations were conducted by Lotus Creek in the three months ended December 31, 2024. Forward-Looking Information and Statements This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "strategy" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to the following: Lotus Creek's operational strategy, plans, priorities and focus; Lotus Creek's objective to be the fastest growing, fully funded, public junior oil and gas company in Canada; the intent to deliver superior total shareholder returns and its anticipated means of achieving such objective; the expectation that the Company has ample liquidity; the expectation of receiving approval from the Alberta Energy Regulator for the facility license in Tucker Lake during the second quarter of 2025; Lotus Creek's plans to execute a Belly River drilling program in Central Alberta during the second half of 2025 with new volumes expected to come on-stream in the fourth quarter of 2025; the intent of Lotus Creek to continue to monitor commodity prices and overall market conditions and to determine whether to make adjustments to its 2025 capital expenditure budget and guidance; the expectation that there are 6 prospective oil targets in each growth area, with open hole, multi-lateral development potential; and statements with respect to reserves and the associated value thereof. The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of Lotus Creek including, without limitation: that Lotus Creek will continue to conduct its operations in a manner consistent with past operations; the general continuance of current industry conditions; the duration and impact of tariffs that are currently in effect on goods exported from or imported into Canada, and that other than the tariffs that are currently in effect, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, reenacts tariffs that are currently suspended, or imposes new tariffs, on the import of goods from one country to the other, including on oil and natural gas, and/or (ii) imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas; the ability of the Company to receive all necessary regulatory approvals without significant adverse conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes; the accuracy of the estimates of Lotus Creek's reserves and resource volumes; certain commodity price and other cost assumptions; and the continued availability of adequate debt and equity financing and funds from operations to fund its planned expenditures. Lotus Creek believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable but no assurance can be given that these factors, expectations and assumptions will prove to be correct. To the extent that any forward-looking information contained herein may be considered a financial outlook, such information has been included to provide readers with an understanding of management's assumptions used for budgeting and developing future plans and readers are cautioned that the information may not be appropriate for other purposes. The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: the risk that (i) the tariffs that are currently in effect on goods exported from or imported into Canada continue in effect for an extended period of time, the tariffs that have been threatened are implemented, that tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased, or new tariffs are imposed, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S., will trigger a broader global trade war which could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company, including by decreasing demand for oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets, and limiting access to financing; the failure to receive any regulatory approvals required for the Company's operations as contemplated or the imposition of the impact of the Russian-Ukraine war and the Israel-Palestine war on the global economy and commodity prices; the impacts of inflation and supply chain issues; pandemics, political events, natural disasters and terrorism; changes in commodity prices; the impact of actions taken by OPEC+ on global supply and demand of oil and gas; changes in the demand for or supply of Lotus Creek's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Lotus Creek or by third party operators of Lotus Creek's properties, increased debt levels or debt service requirements; inability to obtain debt or equity financing as necessary to fund operations, capital expenditures and any potential acquisitions; any ability for Lotus Creek to repay any of its indebtedness when due; inaccurate estimation of Lotus Creek's oil and gas reserve and resource volumes; limited, unfavorable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time to time in Lotus Creek's public documents including risk factors set out in Lotus Creek's Listing Application dated February 5, 2025 on TSXV Form 2B, which is available on SEDAR+ at The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Lotus Creek does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws. Non-GAAP and Other Financial MeasuresThis press release includes references to non-GAAP and other financial measures that Lotus Creek uses to analyze financial performance. These specified financial measures include non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures, and are not defined by IFRS Accounting Standards and are therefore referred to as non-GAAP and other financial measures. Management believes that the non-GAAP and other financial measures used by the Company are key performance measures for Lotus Creek and provide investors with information that is commonly used by other oil and gas companies. These key performance indicators and benchmarks as presented do not have any standardized meaning prescribed by IFRS Accounting Standards and therefore may not be comparable with the calculation of similar measures for other entities. These non-GAAP and other financial measures should not be considered an alternative to or more meaningful than their most directly comparable financial measure presented in the financial statements, as an indication of the Company's performance. Descriptions of the non-GAAP and other financial measures used by the Company as well as reconciliations to the most directly comparable GAAP measure for the quarter ended March 31, 2025 and the period from incorporation on August 21, 2024 to December 31, 2024, where applicable, is provided below. Adjusted Funds from OperationsAdjusted funds from operations is a non-GAAP financial measure defined as cash flows (used in) from operating activities before changes in non-cash operating working capital and decommissioning liabilities settled and adding back transaction costs, if any. Transaction costs, which primarily include legal fees and other related acquisition costs, are excluded to provide a measure representing cash flows generated by the Company's routine business operations. Lotus Creek evaluates its financial performance primarily on adjusted funds from operations and considers it a key measure for management and investors as it demonstrates the Company's ability to generate the adjusted funds from operations necessary to fund its capital program, settle decommissioning liabilities and repay debt. Reconciliation of cash flows from operating activities to adjusted funds from operations: Three months ended ($ thousands)Mar 31, 2025 Dec 31, 2024Cash flows used in operating activities(443 )-Change in non-cash operating working capital1,415 (13 ) Add back: transaction costs647 - Adjusted funds from operations1,619 (13 ) Adjusted Funds from Operations per BOEAdjusted funds from operations per boe is a non-GAAP ratio calculated as adjusted funds from operations, as defined and reconciled to cash flows (used in) from operating activities above, divided by sales production for the period. Lotus Creek considers this a useful non-GAAP ratio for management and investors as it evaluates financial performance on a per boe level, which enables better comparison to other oil and gas companies in demonstrating its ability to generate the adjusted funds from operations necessary to fund its capital program, settle decommissioning liabilities and repay debt. Adjusted Funds from Operations per Weighted Average Basic ShareAdjusted funds from operations per weighted average basic share is a non-GAAP ratio calculated as adjusted funds from operations, as defined and reconciled to cash flows (used in) from operating activities above, divided by the weighted average basic share amount. Lotus Creek considers this non-GAAP ratio a useful measure for management and investors as it demonstrates its ability to generate the adjusted funds from operations, on a per weighted average basic share basis, necessary to fund its capital program, settle decommissioning liabilities and repay debt. Net Surplus (Debt)Net surplus (debt) is a capital management measure defined as debt less current working capital items (excluding debt, risk management contracts, if any, and decommissioning liabilities). Lotus Creek believes net surplus (debt) provides management and investors with a measure that is a key indicator of its leverage and strength of its balance sheet. Changes in net surplus (debt) are primarily a result of adjusted funds from operations, capital and abandonment expenditures and equity issuances. Reconciliation of debt to net surplus (debt): Capital Structure and Liquidity($ thousands)Mar 31, 2025 Dec 31, 2024 Debt- -Working capital surplus (1)12,192 (759 ) Net surplus (debt)12,192 (759 ) (1) Current assets less current liabilities, excluding decommissioning liabilities. Net Debt to Quarterly Annualized Adjusted Funds from OperationsNet debt to quarterly annualized adjusted funds from operations is a non-GAAP ratio and is defined as net debt, as defined and reconciled to debt above, divided by the annualized adjusted funds from operations, as defined and reconciled to cash flows from operating activities above, for the most recently completed quarter. Lotus Creek uses net debt to quarterly annualized adjusted funds from operations to analyze financial and operating performance. Lotus Creek considers this a key measure for management and investors as it demonstrates the Company's ability to pay off its debt and take on new debt, if necessary, using the most recent quarter's results. When the Company is in a net surplus position, the Company's net debt to annualized adjusted funds from operations is not applicable. Operating NetbackOperating netbacks are non-GAAP ratios calculated based on the amount of revenues received on a per unit of production basis after royalties and operating costs. Management considers operating netback to be a key measure of operating performance and profitability on a per unit basis of production. Management believes that operating netback provides investors with information that is commonly used by other oil and gas companies. The measurement on a per boe basis assists management and investors with evaluating operating performance on a comparable basis. Per BOE FiguresThis press release represents various results on a per boe basis, including adjusted funds from operations, cash flows (used in) from operating activities, petroleum and natural gas sales, royalties, operating costs, transportation costs, general and administrative, interest income and interest and financing charges. These supplementary financial measures are determined by dividing the applicable financial figure as prescribed under IFRS by the Company's total sales volumes for the respective period. Barrels of Oil EquivalentDisclosure provided herein in respect of BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of six Mcf to one Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given that the value ratio based on the current price of crude oil, as compared to natural gas, is significantly different from the energy equivalency of 6:1; utilizing a conversion ratio of 6:1 may be misleading as an indication of value. Reserves InformationEstimates of reserves and associated values presented herein have been derived from an evaluation of the assets acquired by Lotus Creek pursuant to the Arrangement prepared by Sproule Associates Limited, the Company's independent qualified reserves evaluator (the "Sproule Report"). The Sproule Report was prepared using forecast prices in accordance with the standards and the reserve definitions contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. The effective date of the Sproule Report is November 30, 2024 and the preparation date of the Sproule Report is December 18, 2024. Additional details from the Sproule Report are set out in Lotus Creek's Listing Application dated February 5, 2025 on TSXV Form 2B, which is available on SEDAR+ at Oil & Gas Matters References to heavy oil, light and medium oil, natural gas liquids and natural gas in this press release refer to the heavy crude oil, light crude oil and medium crude oil, natural gas liquids and conventional natural gas, respectively, product types as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. FOR FURTHER INFORMATION, PLEASE CONTACT: Kevin Johnson Mitchell Harris President & CEO Interim CFO 403-538-8463 403-444-1465 Email: info@ Website: To view the source version of this press release, please visit Sign in to access your portfolio
Business Wire
14-05-2025
- Business
- Business Wire
GreenFirst Reports Financial Results for the First Quarter of 2025
TORONTO--(BUSINESS WIRE)--GreenFirst Forest Products Inc. (TSX: GFP) ('GreenFirst' or the 'Company') announced results for the first quarter ended March 29, 2025. The Company's interim financial statements ("Financial Statements") and related Management's Discussion and Analysis ("MD&A") for the first quarter ended March 29, 2025 are available on GreenFirst's website at and on SEDAR+ at Highlights Q1 2025 net income from continuing operations was $0.9 million or $0.04 earnings per share (diluted), compared to net loss of $26.6 million or $1.39 loss per share (diluted) in Q4 2024. Adjusted EBITDA from continuing operations for Q1 2025 was positive $5.1 million compared to negative $0.9 million in Q4 2024. Benchmark prices saw increases during the quarter which resulted in an average realized lumber prices of $729/mfbm for Q1 2025 which was higher than the $680/mfbm pricing realized in Q4 2024. On February 1, 2025, the new U.S. administration issued an executive order imposing new tariffs on imports from Canada, which came into effect on March 4, 2025. These tariffs were subsequently reversed on March 6, 2025. On April 2, 2025, the U.S. administration issued a new executive order imposing a 10% tariff on all imports into the U.S. from all countries, with much higher tariffs applied to certain other goods. However, goods compliant with the USMCA, such as lumber, are exempt from these tariffs. These events contributed to an environment of economic uncertainty during the quarter. GreenFirst Reports Positive Q1 Results Amid Market Uncertainty "We are pleased to report Q1 2025 performance with positive EBITDA and net income from continuing operations, despite economic uncertainty and ongoing potential tariffs on lumber exports to the U.S. While sales volumes and production were down due to market conditions and weather-related disruptions in Ontario, strong lumber prices exceeded expectations and supported the company's positive financial results. Looking ahead, we remain committed to disciplined capital expenditures and maintaining a strong balance sheet to navigate market volatility and potential headwinds," said Joel Fournier, CEO of GreenFirst. Financial Highlights The following selected financial information is from the Company's financial statements and MD&A: (In thousands of CAD, except per share amounts) March 29, December 31, March 30, For the quarter ended 2025 2024 2024 (4 ) Net sales from continuing operations (3) $ 71,830 $ 69,948 $ 72,447 Operating earnings (loss) from continuing operations 1,411 (5,415 ) 2,666 Net income (loss) 920 (28,029 ) (13,351 ) Net income (loss) from continuing operations 920 (26,647 ) 141 Basic earnings (loss) per share 0.04 (1.47 ) (0.75 ) Basic earnings (loss) per share from continuing operations 0.04 (1.39 ) 0.01 Diluted earnings (loss) per share 0.04 (1.47 ) (0.75 ) Diluted earnings (loss) per share from continuing operations 0.04 (1.39 ) 0.01 Adjusted EBITDA from continuing operations (1)(2) $ 5,060 $ (913 ) $ 6,296 Expand (In thousands of CAD) March 29, December 31, As at 2025 2024 Total assets $ 243,518 $ 220,466 Total liabilities 96,126 74,850 Total shareholders' equity $ 147,392 $ 145,616 Expand 1 Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in this MD&A. 2 Non-GAAP Adjusted EBITDA before one-time duties recoveries for the first quarter ended March 29, 2025 was positive $5.1 million compared to positive $6.3 million for the first quarter ended March 30, 2024 and negative $0.9 million for the fourth quarter ended December 31, 2024. 3 Includes net sales to external parties. 4 Certain prior period amounts have been restated as a result of a change in presentation of the Company's Financial Statements for continuing and discontinued operations under IFRS. Please refer to Note 4 - Discontinued Operations, in the Company's Financial Statements for further information. Expand Net sales were $71.8 million in Q1 2025, an increase of approximately 3% compared to Q4 2024. The increase in net sales was primarily driven by higher realized pricing during the quarter, which offset the impact of lower shipments. Cost of sales were $62.1 million, a decrease of approximately 9% compared to Q4 2024. The decrease in cost of sales was primarily due to lower shipment volumes during the quarter. Other Expenses Duties expense of $5.7 million in the first quarter of 2025 were lower than the fourth quarter of 2024 of $6.2 million due to lower shipments. During both quarters the Company was subject to a combined duty rate of 14.4%. SG&A expenses were $2.6 million in the first quarter of 2025 compared to $2.8 million in the fourth quarter ended December 31, 2024 which is aligned with the Company's initiative to managing its SG&A. Liquidity and Borrowings At March 29, 2025, the Company had $2.5 million in cash on hand and $40.3 million, less $8.6 million for standby letters of credit, of excess availability under its revolving portion of the credit facility. In addition, the Company also had access to $12.0 million remaining under its equipment financing portion of the credit facility. The Company had drawn down $12.0 million under its revolving portion of the credit facility and $13.0 million (net of repayments) under its equipment financing agreement as at March 29, 2025. Outlook The economic outlook for the lumber industry reflects a balance of ongoing challenges and emerging opportunities. Macroeconomic concerns are beginning to stabilize, which may support a recovery in lumber demand and pricing. In North America, the housing market is showing signs of recovery after recent volatility. Mortgage rates are expected to ease while price growth moderates in 2025, which should improve affordability for borrowers. This could provide relief to homeowners and support demand in new construction, remodeling, and renovation activity which are all keys factors that are expected to continue driving lumber demand. However, it's hard to say for sure how much mortgage rates will go down and it is also possible they will rise due to the current economic uncertainty. Structural market dynamics are also contributing to longer-term demand fundamentals. A persistent shortage of housing inventory in the U.S., the aging of the existing housing stock, and demographic-driven demand are likely to support the lumber market both in the near and long term. In the short term, reduced lumber demand and conservative inventory management are creating supply-side pressures. However, continued production curtailments across several regions including British Columbia, Quebec, and other areas of North America could help stabilize or even support lumber prices in the coming months. Labour market constraints remain a key challenge for the industry, contributing to higher costs and occasional production disruptions. Inflationary pressures across North America have further increased the cost of critical inputs, placing additional strain on operational efficiency. Staffing challenges and tight wood supply are ongoing risks that could negatively impact production output and margins across the industry. Despite these pressures, continuous improvements in production and processing techniques are driving gains in efficiency and helping reduce costs. Companies with access to capital to invest in modern, efficient equipment are better positioned to enhance long-term competitiveness. A growing focus on environmental sustainability is also reshaping the industry landscape. Organizations that prioritize sustainable forest management and environmentally responsible operations are increasingly gaining favor among regulators, consumers, and investors. GreenFirst is aligned with this trend, producing high-quality lumber in a safe and responsible manner. We are committed to protecting our employees and the environment while creating long-term value for our stakeholders. Our renewable building materials sequester carbon and represent a natural solution in the global effort to combat climate change. Nonetheless, downside risks remain. Should broader economic conditions or employment levels weaken significantly, or if interest rates remain elevated for an extended period without sufficient adjustments in housing prices, affordability could remain strained. This scenario could suppress new home construction and, in turn, reduce near-term demand for lumber products. On February 1, 2025, the new U.S. administration issued an executive order imposing new tariffs on imports from Canada, which came into effect on March 4, 2025. These tariffs were subsequently reversed on March 6, 2025. In parallel, on March 1, 2025, the U.S. administration launched a new trade investigation focused on potential anti-dumping measures targeting imported Canadian lumber. This investigation has contributed to an environment of financial uncertainty for Canadian-based lumber manufacturers. The actual impact of any current or future tariffs remains unknown and cannot be reasonably estimated at this time. Several factors will influence the outcome, including the effective date and duration of any new trade actions, potential changes in the amount, scope, or nature of the tariffs, and the possibility of countermeasures by the Canadian government. Additionally, any mitigating actions available to the Company or the broader industry may affect the overall impact. We continue to monitor developments closely and assess their potential implications for our operations and financial position. Reconciliation of Adjusted EBITDA References to EBITDA in this document are measures of earnings (loss) before interest and finance costs, income taxes, depreciation and amortization, while references to Adjusted EBITDA reflect EBITDA plus other non-operating costs such as impact of valuation changes on the Company's investments, loss on sale of assets and other non-operating losses. Management believes that certain lenders, investors, and analysts use EBITDA and Adjusted EBITDA as a common valuation measurement and to measure the Company's ability to service debt and meet other payment obligations. EBITDA and Adjusted EBITDA are not intended to replace net earnings (loss), or other measures of financial performance and liquidity reported in accordance with GAAP. For more information on non-GAAP measures, please see the Company's MD&A. 1 Adjusted EBITDA is a Non‐GAAP measure and does not have standardized meaning under GAAP or IFRS. As a result, it may not be comparable to information presented by other companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the Non-GAAP Measures section in this MD&A. 2 Non-GAAP Adjusted EBITDA before one-time duties recoveries for the first quarter ended March 29, 2025 was positive $5.1 million compared to positive $6.3 million for the first quarter ended March 30, 2024 and negative $0.9 million for the fourth quarter ended December 31, 2024. 3 Certain prior period amounts have been restated as a result of a change in presentation of the Company's Financial Statements for continuing and discontinued operations under IFRS. Please refer to Note 4 - Discontinued Operations, in the Company's Financial Statements for further information. Expand Earnings Conference Call GreenFirst will host a conference call to review the Q1 2025 financial results on Wednesday, March 14, 2025 at 9:00am (Eastern). The live webcast of the earnings conference call can be accessed via web: and via phone: (+1) 416 764 8658 or (+1) 888 886 7786. A replay of the webcast and presentation slides will be available on GreenFirst's website following the conference call. About GreenFirst GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production. The Company owns four sawmills located in rich wood baskets proudly operating over six million hectares of FSC® certified public Ontario forest lands (FSC®-C167905). The Company believes that responsible forest practices, coupled with the long-term green advantage of lumber, provide GreenFirst with significant cyclical and secular advantages in building products. Forward Looking Information Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact are forward-looking statements. Forward looking statements are often identified by terms such as 'may', 'should', 'anticipate', 'expect', 'potential', 'believe', 'intend', 'estimate' or the negative of these terms and similar expressions. Forward-looking statements are based on certain assumptions and, while GreenFirst considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. In addition, forward-looking statements necessarily involve known and unknown risks, including those set out in GreenFirst's public disclosure record filed under its profile on Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. GreenFirst disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
