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

Zanders Paper continues restructuring process by filing for insolvency

After a successful year of transformation in 2019, Zanders Paper posted a strong first quarter of 2020; then the coronavirus pandemic hit the global economy and led to a significant decline in sales of specialty papers for consumables. The various effects of this challenging situation could not be compensated completely by the German company despite the increased operating profitability and the fundamentally good set-up and positioning. Taking these circumstances into account, the Zanders Paper management has decided to carry out the continuation of the long-term restructuring of the company within the framework of insolvency proceedings and today filed an application to this effect with the competent district court in Cologne. This is done to protect the interests of all stakeholders including but not limited to the employees, creditors, customers and the City of Bergisch Gladbach. This gives Zanders Paper a breathing room to further rebuild and shape the company for the future. During the opening insolvency proceedings, which are expected to last two to three months, business operations will be continued by the insolvency administrator.

Evergreen – Price Announcement Effective 7/1 – Coated Paper

Effective with all orders shipping on or after July 1, 2018, Evergreen Packaging is raising the transaction price on all specialty and coated groundwood products by $2.00/cwt. This increase applies to all products, including, but not limited to, the brands listed below: TruSpec4; TruSpec4.5; TruSpec5; Coated Freesheet; Coated 1-Side. ALL Grades, Basis Weights and Finishes. All standard upcharges will continue to apply.

NORPAC Named a Best-in-Class Employer

North Pacific Paper Company is pleased to announce its recognition as a Best-in-Class Employer in a recently released survey of midsize employers conducted by global human resources firm, Gallagher. Gallagher’s 2021 Benefits and Benchmarking Survey found the Longview, WA-based papermill to be a leading employer in providing innovative solutions for creating organizational structures and workplace policies and rewards which inclusively engage its employees. Gallagher’s Best-in-Class awards recognize employers that excel in supporting their employees’ physical, emotional, career and financial wellbeing for better organizational outcomes.
Back To Top
×Close search
Search