Norske Skog: Improved sales prices partly offset by higher variable cost

Norske Skog’s EBITDA in the third quarter of 2021 was NOK 111 million, an increase from NOK 17 million in the second quarter of 2021. Sales price increases in the quarter were offset by unprecedented increases in raw material costs, in particular energy. The utilization rate was very high due to a tightened market for publication paper following significant capacity closures and post Covid-19 demand recovery across all grades. Following the quarter, Norske Skog successfully financed the EUR 350 million containerboard conversion investment with debt facilities of EUR 265 million.

The substantial capacity closures have eliminated the imbalance in both the newsprint and magazine paper markets. There have been substantial price hikes in the European markets during the third quarter caused by the unprecedented volatile energy and raw material costs situation currently experienced in Europe. These cost increases are expected to continue and may necessitate further price increases in the fourth quarter of 2021 and into 2022,” says Sven Ombudstvedt, CEO of Norske Skog.

Cash flow from operations was NOK -99 million in the quarter compared to NOK -190 million in the previous quarter, negatively impacted by employee redundancy payments in the quarter of NOK 129 million at the Tasman mill in New Zealand. Operating earnings in the third quarter of 2021 were NOK -565 million compared to operating earnings in the second quarter of 2021 of NOK -277 million. The quarter was negatively affected by non-cash changes in fair value of energy contracts in Norway amounting to NOK -551 million. Net loss in the quarter was NOK 602 million compared to a net loss of NOK 355 million in the previous quarter. Net interest-bearing debt was NOK 1 052 million at the end of the third quarter, with an equity ratio of 35%.
details at: https://www.norskeskog.com/investors/press-releases/english-press-releases/improved-sales-prices-partly-offset-by-higher-variable-cost?PID=4241&M=NewsV2&Action=1

Related Posts

Now the jointly owned biorefinery for biofuel has opened

The jointly owned biorefinery, owned by SCA and St1, is now inaugurated. When fully operational in Gothenburg, the refinery will contribute an annual production of around 200,000 tons of renewable fuel. Mikael Källgren, Business Area Manager for Renewable Energy at SCA, notes that the inauguration marks a new milestone for SCA. The facility is the first where SCA produces renewable vehicle fuel, and SCA's share in the facility is 25 percent. The partnership and production at the facility also mean that SCA's pulp mills will be able to supply tall oil, a by-product from pulp production, for further processing at the new factory. The factory has undergone a start-up phase since the beginning of the year and has now commenced operations to produce sustainable aviation fuels (SAF), biodiesel (HVO), bio-naphtha, and bio-LPG. The inauguration of the refinery in Gothenburg also marks the culmination of a long process where an idea and vision have transformed into a state-of-the-art facility.

Stora Enso leases part of the Veitsiluoto site to Infinited Fiber Company

Stora Enso is leasing the former paper machinery hall at its Veitsiluoto site in Finland to the textile technology company Infinited Fiber Company, which plans to build a commercial-scale factory to produce regenerated textile fiber from textile waste. Earlier this month Stora Enso sold its district heating business at Veitsiluoto to utility infrastructure company Nevel, a provider of advanced industrial and municipal infrastructure solutions. “We always want to find sustainable and financially robust long-term solutions to ensure a viable future for our former sites. I am pleased with our rapid progress in signing a lease with companies that can take advantage of the Veitsiluoto infrastructure and bring new business to the area. Our work at Veitsiluoto continues in order to bring more activity and jobs to the site," says Seppo Parvi, Stora Enso's CFO and Country Manager for Finland.

Paper Excellence announces restart date of Powell River machine (mypowellrivernow.com)

The company confirmed that it plans to restart Number 11 Paper Machine at Catalyst Powell River, on or around May 1st. Paper Excellence says this restart reflects the recent recovery in global paper markets and its “long-term commitment to the Powell River facility.” A total of 200 jobs will return with the startup of the paper machine. The machine was curtailed last spring after an external malware attack, and the COVID-19 pandemic simultaneously impacted the mill’s paper production as well as global paper demand.
Back To Top
×Close search
Search