Norske Skog Announces Q4 2020 Results

Norske Skog’s EBITDA in the fourth quarter of 2020 was NOK 146 million, an increase from NOK 73 million in the third quarter of 2020, as a result of increased sales volume and favourable cost development. Despite improvements in the fourth quarter, the markets have not returned to pre-COVID-19 levels. In the fourth quarter, Norske Skog experienced significant progress on several of its green growth projects, such as the containerboard and energy projects at Bruck and Golbey, and fibre projects at other units.

  • Although the corona restrictions have had a severe negative impact on our operations, we have managed to both stabilise our publication paper operations and continue the development of our green growth projects. Our publication paper capacity has been adjusted in response to the adverse market development in light of COVID-19, to ensure future profitability. Each publication paper mill are now conducting studies to transform their operations to ensure sustainable industrial sites with a long-term potential, says Sven Ombudstvedt, CEO of Norske Skog.

Cash flow from operations was NOK 73 million in the quarter compared to NOK 115 million in the previous quarter, mainly due to a reduction of inventory and accrued CO2-compensation to be paid in 2021. Operating earnings in the fourth quarter of 2020 were NOK -1 276 million compared to operating earnings of NOK -31 million in the third quarter of 2020. The quarter was significantly affected by non-cash change in accounting treatment of energy contracts in Norway amounting to NOK 1 129 million, and property, plant and equipment impairments at Boyer, Saugbrugs and Skogn amounting to NOK 258 million. Net loss in the quarter was NOK -1 363 million compared to a net loss of NOK -89 million in the previous quarter. For the entire 2020, Norske Skog recorded a net loss of about NOK –1 884 million, which were affected by the same items as stated above. Net interest-bearing debt was NOK 725 million at the end of the fourth quarter, with an equity ratio of 41%. Due to the on-going strategic shift of the company, the board of directors has decided not to propose to the general meeting any dividend for 2020.
details at: https://www.norskeskog.com/Investors/Press-releases/English-press-releases/Significant-progress-on-green-growth-projects?PID=4241&M=NewsV2&Action=1

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