Norske Skog - Strong operating performance

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Norske Skog’s EBITDA in the third quarter 2019 was NOK 505 million, an increase from NOK 444 million in the second quarter 2019. EBITDA was impacted by a gain on sale of water rights at Albury and CO2-compensation granted for Norske Skog Saugbrugs.

The sales volumes and sales prices in Europe were slightly down in the third quarter. Less domestic demand in Australasia resulted in more low-margin export sales from the region.

- After a successful stock exchange listing, I am very pleased to present a financially robust company generating a solid financial performance despite challenging market conditions, especially for the Australasian mills. Also, the sale of the Albury mill will substantially strengthen our cash position and reduce our market exposure to the Asian low-margin markets from 2020, says Sven Ombudstvedt, CEO of Norske Skog.

Operating earnings in the third quarter were NOK 1,113 million compared to operating earnings of NOK 1,150 million in the second quarter of 2019. Net profit in the third quarter was NOK 1,018 million compared to a net profit of NOK 1,032 million in the second quarter 2019, mainly due to non-cash changes in the valuation of elements in energy contracts. Cash flow from operations declined to NOK 150 million in the quarter from NOK 225 million in the second quarter, mainly due to change in working captial as a result of Saugbrugs’ CO2-compensation, which will be received in 2020. Net interest-bearing debt is NOK 852 million at the end of the third quarter, with an equity ratio of 55%.

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Source: Norske Skog