Norske Skog: Normalised profitability despite energy volatility

Norske Skog’s EBITDA in the first quarter of 2022 was NOK 610 million, an increase from NOK 422 million in the fourth quarter of 2021. Sales prices for all grades increased in the quarter as a consequence of unprecedented high energy costs in Europe and a tightened publication paper market situation. The European mills operated at full capacity during the quarter. The pellets facility Nature’s Flame was sold at a gain of NOK 175 million in the quarter.

“We have been able to sustain normalised margins on our publication paper products despite the price volatility on raw material and especially energy during the quarter. Following significant capacity closures in the industry over the last two years, the demand for publication paper now exceeds available capacity, causing our mills to run at full capacity,” says Sven Ombudstvedt, CEO of Norske Skog.

Cash flow from operations was NOK 196 million in the quarter compared to NOK 317 million in the previous quarter, positively impacted by the improved operating margins, but negatively impacted by change in working capital, being mainly an increase in trade and other receivables. Operating earnings in the first quarter of 2022 were NOK 593 million compared to operating earnings in the fourth quarter of 2021 of NOK 479 million. Net profit in the quarter was NOK 583 million compared to a net profit of NOK 400 million in the previous quarter. Net interest-bearing debt was NOK 924 million at the end of the first quarter, with an equity ratio of 37%.

Norske Skog sold the Nature’s Flame pellets company for a consideration of NZD 47.8 million to Talley’s Group, a New Zealand-based food company in the quarter. The gain recognised on the sale in the quarter was NOK 175 million.
details at: https://www.norskeskog.com/investors/press-releases/english-press-releases/normalised-profitability-despite-energy-volatility?PID=4684&M=NewsV2&Action=1

Related Posts

Phoenix Paper/GWCC announces new President and CEO Michael Grimm

Global Win Capital Corporation (GWCC) ultimately owned by Shanying International, announced the appointment of Michael Grimm as its new president and chief executive officer. Grimm assumes day-to-day leadership of the North American business unit and underlying investment in North America which includes Phoenix Paper Wickliffe LLC. Mr. Grimm brings more than 30 years of relevant manufacturing experience to his new role. The announcement was approved by the board of directors of GWCC and was shared by Henry Yan Vice President of Shanying International, who remarked that Grimm was a “standout in a long, intensive international search.” Henry also added, “Mike is a strong match for what we were looking for to lead the North American business unit. He brings direct experience in the Uncoated Freesheet market as well as a solid track record of leading manufacturing organizations through highly successful operational and commercial transformations. We welcome Mike and are excited about the extensive knowledge and experience he brings to Phoenix Paper.”

Metsä Group’s state-of-the-art sawmill starts in Rauma, Finland

The new state-of-the-art pine sawmill in Rauma in Finland, owned by Metsä Fibre, part of Metsä Group, has moved from production test run to continuous sawn timber production. The sawmill is operating continuously in three shifts. “The Rauma sawmill implements Metsä Group’s strategic goals of increasing the value of Finnish forests, growing profitably with our customers, enabling fossil free production and increasing the production of products that store carbon for a long time. The role of the mechanical forest industry is very important for our whole value chain, and I’m happy that new ways to significantly improve performance have been found also there,” says Ilkka Hämälä, President and CEO of Metsä Group.

Paper Excellence reinforces commitment to restarting Prince Albert Pulp Mill by investing more than $600,000

Paper Excellence has recently invested more than $600,000 in engineering and consulting work focused on restarting the Prince Albert pulp mill. Paper Excellence originally purchased the Prince Albert pulp mill in 2011. It now plans to restart the facility as soon as possible once the current non-compete agreement with the former owner expires in March 2021. “We plan to replace the entire fibre line from the digester to the last bleaching stage. This will replace the heart of the mill and let us take full advantage of the existing recovery boiler which is one of the most modern in Canada,” explains Carlo Dal Monte, Vice President, Energy & Business Development. “While this is an expensive strategy, it will simplify construction and minimize commissioning risks. Once we are up and running, we will also realize a significant improvement in product quality, operating costs and environmental performance compared to the mill that was shut down in 2006.”
Back To Top
×Close search
Search