Norske Skog’s EBITDA in the first quarter of 2020 was NOK 379 million, a decrease from NOK 560 million in the fourth quarter of 2019, mainly due to the sale of water rights and the termination of energy contract recognised in the fourth quarter.
The annual general meeting was held on April 16, and approved to pay a dividend of NOK 6.25 per share. The COVID-19 pandemic will have significant near-term impact on operations due to current worldwide restrictions on movement of goods and people which reduces demand for publication paper.
- Norske Skog delivered a strong operating performance in first quarter of 2020. At present, we recognise the effects of the corona restrictions in most of our markets. The current challenging market conditions will be handled with active asset management; however, we are utilising our strong financial platform to transform the traditional publication paper operations into new green growth initiatives, says Sven Ombudstvedt, CEO of Norske Skog.
Operating earnings in the first quarter of 2020 were NOK 90 million compared to operating earnings of NOK -117 million in the fourth quarter of 2019. Net loss in the quarter was NOK 374 million compared to a net loss of NOK 158 million in the previous quarter, impacted by the weakening of the NOK, unrealised currency losses on debt, and negative non-cash changes in the valuation of energy contracts.
Cash flow from operations was NOK 470 million in the quarter compared to NOK -78 million in the previous quarter, positively impacted by release of working capital (including receipt of CO2 compensation) and a reduction in restructuring payments compared to the previous quarter. Net interest-bearing debt was NOK 269 million at the end of the first quarter, with an equity ratio of 51%.
Source: Norske Skog