By Stephen Nakrosis

Shares of Mercer International traded lower in the after-hours market after the company said it will pause its quarterly dividend with the view to prudently allocate capital.

The biomass and energy company had been paying a quarterly dividend of 7.5 cents per share.

After the bell Thursday, shares were trading 6.2% lower, at $3.48. The stock lost 7.7% in the day's regular session, closing at $3.71.

Juan Carlos Bueno, the company's chief executive officer, said the company views the decision as prudent from a capital allocation standpoint, as the company navigates an uncertain trade environment. Bueno said Mercer was reiterating its long-term commitment to a competitive dividend once the uncertainties are resolved.

For the second-quarter, the company reported a loss per share of $1.29 on revenue of $453.5 million.

Mercer said its second quarter results were negatively impacted by a weaker dollar and by current challenges in the global trade environment affecting pulp demand.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

July 31, 2025 17:29 ET (21:29 GMT)

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