Norske Skog 2Q 2020 Results

Norske Skog’s EBITDA in the second quarter of 2020 was NOK 138 million, a decrease from NOK 379 million in the first quarter of 2020, mainly due to national restrictions on movement of goods and people following the outbreak of the corona pandemic. The restrictions had severe negative impact on operations due to a sudden and considerable drop in demand for publication paper.

The corona pandemic had significant negative effects on demand in all of our markets. We have handled the challenging market conditions by adapting production to demand on all of our sites except for normal pellets operations at the Taupo plant in New Zealand. The work to convert two newsprint machines to packaging grades at our Bruck and Golbey plants has high priority. Our strong financial platform will be important in our strategy to continue the transformation of our traditional publication paper operations into packaging and new green growth initiatives, says Sven Ombudstvedt, CEO of Norske Skog.

Operating earnings in the second quarter of 2020 were NOK -122 million compared to operating earnings of NOK 90 million in the first quarter of 2020 impacted by impairment recognized in the quarter. Net loss in the quarter was NOK 59 million compared to a net loss of NOK 374 million in the previous quarter. The previous quarter was impacted by unrealised currency loss that was only partially reversed in the second quarter as NOK was stronger at the quarter end.

Cash flow from operations was NOK -109 million in the quarter compared to NOK 470 million in the previous quarter. The first quarter was to a large degree positively impacted by CO2-compensation, the sale of CO2-allowances and currency gain from the completion of the Albury sale. The second quarter was negatively impacted by payment of income taxes mainly at Golbey. Net interest-bearing debt was NOK 329 million at the end of the second quarter, with an equity ratio of 52%.
more detail at source: https://www.norskeskog.com/Investors/Press-releases/English-press-releases/Demand-drop-due-to-corona-pandemic?PID=4241&M=NewsV2&Action=1

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