Mercer International Inc. reported strong results for the fourth quarter and year ended December 31, 2017. Operating EBITDA* in the fourth quarter of 2017 increased by 54% to a record $89.1 million compared to $57.8 million in the fourth quarter of 2016 and by 39% from $64.0 million in the prior quarter of 2017. For 2017, Operating EBITDA increased by approximately 36% to $252.3 million from $185.7 million in 2016. For the fourth quarter of 2017, our net income was $41.7 million, or $0.64 per basic and diluted share, compared to $18.5 million, or $0.29 per basic and $0.28 per diluted share, in the fourth quarter of 2016 and $21.1 million, or $0.33 per basic and $0.32 per diluted share, in the prior quarter of 2017. For 2017, net income was $70.5 million, or $1.09 per basic and $1.08 per diluted share, after giving effect to a loss on the early settlement of debt of $10.7 million (or $0.16 per basic and diluted share), compared to $34.9 million, or $0.54 per basic and diluted share, in 2016. Click Read More below for additional information.
• Operating Cash Generation2 and Adjusted EBITDA² set new records in the quarter: R$1.28 billion and R$1.57 billion, respectively.
• Strong performance in the pulp segment, supported by the effect from exchange variation: adjusted EBITDA1/ton of R$1,646/ton (+59.4% on 2Q17).
• Marginal increase in cash cost in LTM: R$593/ton, 0.8% higher than in LTM to 2Q17.
• Solid results and new increases in paper prices in both the domestic and international markets: adjusted EBITDA1/ton of R$892/ton (+25.8% on 2Q17).
• Truck drivers’ strike: production loss of approximately 80,000 tons of market pulp and of approximately 25,000 tons of paper in 2Q18, which adversely affected sales.
• Investments: conclusion of the acquisition of around 9,500 hectares in rural areas and 1,200,000 m³ of wood in São Paulo state from Duratex S.A.
• Transaction with Fibria: authorization granted without restrictions by Federal Trade Commission (U.S. antitrust agency, case formally filed at CADE (Brazil) and SAMR (China) and pre-filing in European Union and Turkey, issuance of declaration of effectiveness by the Securities Exchange Commission of the United States of America.
• Financing of Fibria Transaction: 6th debentures issue (R$4.7 billion | US$1.3 billion) and reduction of financial commitment to US$4,4 billion.
details at: http://ir.suzano.com.br/ptb/6947/636221.pdf