Fortress Paper reported 2015 fourth quarter operating EBITDA of $3.3m.
The Dissolving Pulp Segment generated operating EBITDA of $1.5 million and the Security Paper Products Segment generated EBITDA of $3.9 million . Corporate costs included in operating EBITDA were $2.1 million . "We were pleased to report another quarter o f positive operating EBITDA ," stated Yvon Pelletier, Chief Executive Officer .
" Operating EBITDA for the year 2015 was $10.4 million, a $32.9 million improvement from the operating EBITDA loss of $22.5 million for the year 2014. In the Dissolving Pulp Seg ment , our cogeneration facility operated near capacity, sales diversification and volumes improved, market dynamics became more balanced, and our margins improved due to the Canadian dollar weakening significantly against the US dollar .
Improvements in mill productivity will continue to be a focus. In the Security Paper Products Segment , we experienced increases in volumes shipped, sales and efficiencies as well as reduced waste rates which translated to improved mill performance. As we enter 201 6, we are encouraged with progress made in 2015 and will endeavo ur to build on this ."
Fourth Quarter 2015 Segment Results
Dissolving Pulp Segment operating EBITDA was $1.5 million for the fourth quarter of 2015 representing a decrease of $3.9 million when compared to the third quarter of 2015. The results of the fourth quarter of 2015 were negatively impacted by the annual major maintenance shutdown partially offset by higher dissolving pulp prices and foreign exchange rates on sales, which are primarily denominated in US dollars .
Dissolving Pulp Segment operating EBITDA for the fourth quarter was a $5.2 million improvement when compared to the fourth quarter of 2014. This improvement was a result of increased power generation sold under the power supply agreement s with Hydro Q uébe c as well as higher dissolving pulp prices and foreign exchange rates on sales .
The Company sold 29,424 air dried metric tonnes ( "ADMT ") of dissolving pulp in the fourth quarter of 2015 compared to 45,377 ADMT of dissolving pulp in the previous quarter. The decrease in sales was mainly due to low inventory levels and lower production during the quarter resulting primarily from the annual major maintenance shut down. Although market conditions remain challenging, th e second half of 2015 saw improved pricing and industry conditions. However, the Dissolving Pulp Segment continues to be affected by the antidumping duty imposed by China's Ministry of Commerce in April 2014.
Security Paper Products Segment operating EBITDA was $3.9 million for the fourth quarter of 2015 representing an improvement of $1.7 million when compared to the third quarter of 2015 and a $0.7 million improvement when compared to the fourth quarter of 2014. The Landqart mill continues to implement new initiatives to improve efficiencies and profitability. The Landqart mill sold 2,523 tonnes of security paper in the fourth quarter of 2015, compared to 2,456 tonnes in the third quarter of 2015. Results in the fourth quarter of 2015 were impacted by the timing of sales, changes in product mix and fluctuations in foreign exchange rates . More efficient production and improved waste rates positively impacted the results relative to both the previous quarter and the prior year comparative period.