Continued growth in challenging containerboard markets

Geir Drangsland, CEO of Norske Skog

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Norske Skog’s EBITDA in the third quarter of 2023 was NOK 327 million, a decrease from NOK 380 million in the second quarter of 2023.

The main driver for the lower third quarter EBITDA was lower publication paper sales prices. The cash flow from operations in the quarter was NOK 173 million. Deliveries of packaging paper increased according to ramp-up plans, and Norske Skog Bruck received favourable quality feedback from customers. The Norwegian government proposed to increase the quota price floor for receiving CO2-compensation.

“We are very pleased by the positive feedback from our containerboard customers, and that we are well underway to become one of the leading independent supplier of recycled containerboard in Europe. At the same time, we are maneuvering our mills to be as cost effective as possible. By the end of the fourth quarter 2023, Saugbrugs PM5, in addition to PM4, will produce and deliver quality SC magazine paper to our customers,” says Geir Drangsland, CEO of Norske Skog.

Cash flow from operations was NOK 173 million in the quarter compared to NOK 353 million in the previous quarter, mainly due to lower EBITDA, receivable insurance compensation, and increased working capital. Operating earnings in the third quarter of 2023 were NOK 36 million compared to operating earnings in the second quarter of 2023 of NOK 146 million. The operating earnings in the quarter were negatively affected by non-cash changes in fair value of energy contracts in Norway amounting to NOK 131 million. Profit in the quarter was NOK 134 million compared to NOK 45 million in the previous quarter. The net profit was affected by unrealized currency gain on euro denominated debt as NOK strengthened in the period. Net interest-bearing debt increased from NOK 1 746 to 2 662 million at the end of the quarter, mainly debt related to the packaging conversion at Norske Skog Golbey, and buy-back of own shares. The equity ratio was unchanged at 42%.


Source: Norske Skog