The Company's paper segment results were also improved in the current quarter, reflecting reduced unit manufacturing costs and higher shipment levels, which were partially offset by lower sales realizations.
During the fourth quarter of 2012, the Company obtained a new $110 million operating loan facility replacing its previous $40 million operating loan facility. The Company's operating loans were undrawn at December 31, 2012, with $108 million available and the balance reserved for standby letters of credit.
Commenting on the fourth quarter's results, CPPI's CEO, Don Kayne, said, "After the challenges experienced in the last quarter, it was encouraging to see solid improvements in productivity, as well as some improvement in market conditions this quarter."
NBSK pulp prices are projected to show a modest improvement through the first half of 2013, but the outlook for the balance of the year is more uncertain given the economic challenges in Europe and new hardwood and softwood pulp capacity currently projected to come online the second half of 2013. For the month of January, the Company announced an increase in the North American NBSK pulp list price of US$30 per tonne. There are no maintenance outages scheduled in the first quarter of 2013.
On December 6, 2012, the Company entered into an agreement with BC Hydro under the Integrated Power Offer program to upgrade the turbines at its Northwood Pulp Mill. The project is targeted for completion in the fourth quarter of 2013.
On February 13, 2013, the Board of Directors reinstated the Company's dividend, declaring a quarterly dividend of $0.05 per share, payable on March 5, 2013 to shareholders of record on February 26, 2013. In addition, reflecting the Company's current corporate structure and its latest outlook for 2013, the Board projects that it will declare further quarterly dividends of $0.05 per share through the balance of 2013, but will review the issuance of dividends on a quarterly basis.
Additional Information and Conference Call
A conference call to discuss the fourth quarter's financial and operating results will be held on Friday, February 15, 2013 at 7:30 AM Pacific time. To participate in the call, please dial 416-340-2216 or Toll-Free 866-226-1792. For instant replay access until March 1, 2013, please dial 800-408-3053 and enter participant pass code 7426712#. The conference call will be webcast live and will be available at www.canforpulp.com. This news release, the attached financial statements and a presentation used during the conference call can be accessed via the Company's website at http://www.canforpulp.com/investors/webcasts.
Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and the Company assumes no obligation to update such information to reflect later events or developments, except as required by law.
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