Norske Skog reported a sharp decline in earnings for the second quarter of 2025, with EBITDA falling to NOK 106 million from NOK 612 million in the previous quarter.
The downturn reflects the absence of a NOK 560 million insurance settlement recorded in Q1, along with ongoing pressure across global pulp and paper markets.
Total operating income dropped to NOK 2.39 billion from NOK 3.1 billion, while operating earnings fell to NOK 74 million from NOK 489 million. Profit before taxes came in at NOK 49 million, compared to NOK 442 million the previous quarter.
Despite these lower results, the company strengthened its balance sheet. Equity rose to NOK 5.88 billion, increasing the equity ratio from 39% to 42%. Net interest-bearing debt declined to NOK 3.96 billion.
“While our Q2 financial performance reflects a challenging environment, we continue to invest in projects that support long-term profitability and diversification,” said Geir Drangsland, CEO of Norske Skog.
The company highlighted the successful commissioning of PM1 at the Norske Skog Golbey mill in France as a strategic milestone. The recycled containerboard machine produced its first paper reel in late May, contributing around 4,000 tonnes in the quarter. Utilisation is expected to reach 20–30% in Q3, with full ramp-up targeted for the first half of 2027.
Meanwhile, Bruck PM3 continued to perform well, delivering an EBITDA of NOK 26 million. The packaging paper segment overall recorded a negative EBITDA of NOK 52 million due to high fixed costs during Golbey’s ramp-up.
Norske Skog is also progressing with upgrades at its Skogn mill to enable book paper production by 2026, reducing dependence on the declining newsprint market.
The company expects continued volatility in raw material costs and persistent overcapacity in both publication and packaging paper markets. It has taken steps to preserve liquidity, including the sale of CO₂ allowances, energy refunds, and revised loan repayment schedules.
At Saugbrugs, a strategic review is underway. Options include restarting PM6, closing PM4 and PM5, and increasing capacity from 200,000 to 240,000 tonnes. The decision is expected in the second half of 2025.
Norske Skog is also appealing its exclusion from the EU Emissions Trading System (EU ETS) for 2026–2030, following new criteria affecting mills with high shares of sustainable biomass emissions.
While short-term pressures persist, the company maintains that its transformation strategy—backed by solid equity and strategic investments—positions it for long-term growth in both packaging and publication paper.
Norske Skog is a leading European producer of publication and packaging paper, operating four industrial sites across the continent. Its product portfolio includes newsprint, magazine paper, book paper, testliner, and fluting. The company has an annual production capacity of 0.8 million tonnes for packaging paper and 1.3 million tonnes for publication paper. Norske Skog employs approximately 1,700 people and is headquartered in Oslo, Norway. The company is listed on the Oslo Stock Exchange under the ticker symbol NSKOG.
