1st Quarter Results
Our financial performance for the first quarter of 2024 resulted in profit-sharing payments for employees under the plan. The payout will be $2.43 per eligible hour bonus payment for qualifying employees deposited into your bank account by May 17, 2024.
An increase in Portland slab shipment, lower average selling prices, and a favorable foreign exchange adjustment impact for the quarterly profit-sharing plan calculation impacted our financial performance.
We continued to see lower OCTG (Oil Country Tubular Goods) volume during the quarter, mainly due to imported pipe into Canada from other countries at significantly lower selling prices. As a result, our OCTG volume was slightly lower compared to the prior quarter. The Regina 2″ mill line was idled in late January in response to lower demand for our Carbon Tubing products.
Despite these challenges, the impact of the lower OCTG volume was offset by the increase in Portland slab shipment, which enabled us to keep our coil cost low. Furthermore, our ongoing efforts with EBS yielded positive results in our conversion costs.
Regina 24″ commenced production in late January to fulfill a small order; the current plan is to idle the mill after the completion of the current order if a new order is not secured. Regina’s Spiral remained idle during the quarter.
Looking Forward
The safety of our employees is important to us; therefore, we must continue to focus on improving our safety performance, stopping unsafe work, and reporting all near misses; doing these will help us have better safety performance.
We continue to monitor the market and consistently take necessary measures to ensure we remain competitive while controlling operational performance with a focus on the quality of our products, managing costs effectively, and fulfilling our commitments to our valued customers.