Our financial performance for the first quarter of 2023 resulted in profit-sharing payments for employees under the plan. The payout will be a $0.86 per eligible hour bonus payment for qualifying employees deposited into your bank account by August 15, 2023.
Our financial performance for the quarter was impacted by the slowdown in demand for our OCTG and line pipe products; this is mainly due to a high inventory of imported pipes on the ground at a much lower price. We also saw the oil & gas seasonal spring break-up return this year, leading to lower demand for OCTG products. Regina Tubular’s 24” and spiral mills remained idle, and we ran at reduced crewing levels at some of our production facilities in Alberta.
With the reduced demand for OCTG and line pipe products, third-party sales at Regina Steel increased compared to the prior quarter. Portland slab was also produced and shipped with any available capacity.
Thank you all for your continued dedication and performance. Your efforts are very much appreciated.
Looking Forward
First and foremost, we must continue focusing on improving our safety performance. We have a long way to go before we reach our safety goals. A strong focus this year on stopping unsafe work and reporting all near misses will help us get there.
We are starting to see the softening of the flat market, which may impact the slab shipment volume to Portland. However, we expect the OCTG & line pipe market to improve later in the third quarter as distributors deplete their on-ground inventory of imported pipes.
We must continue to improve our operational performance with a focus on the quality of the products we produce, controlling costs, and delivering on our commitments to our customers.