Norske Skog: Positive market development

Norske Skog’s EBITDA in the second quarter of 2024 was NOK 471 million, an increase from NOK 76 million in the first quarter of 2024. The second quarter EBITDA was positively impacted by insurance at Norske Skog Saugbrugs of NOK 338 million. Despite signs of positive developments in the publication and containerboard markets, closures are still required. The process to deliver a main study on the BCTMP-production project (bleached chemi-thermomechanical pulp) at Saugbrugs has started.

Cash flow from operations was NOK 299 million in the quarter compared to NOK -69 million in the previous quarter. The second quarter cash flow was positively influenced by somewhat higher sales prices and -volumes, and a decrease in working capital due CO2 related proceeds. Operating earnings in the second quarter of 2024 were NOK 364 million compared to operating earnings in the first quarter of 2024 of NOK -177 million. The operating earnings in the quarter were affected by insurance at Norske Skog Saugbrugs of NOK 338 million, non-cash changes in fair value of energy contracts in Norway amounting to NOK 44 million and depreciation of NOK 128 million.

Profit before tax in the quarter was NOK 311 million compared to loss before tax of NOK -382 million in the previous quarter. Net interest-bearing debt decreased from NOK 3 246 to 2 970 million at the end of the quarter in part due to favourable working capital changes. The equity ratio was 40%. During the quarter, Norske Skog refinanced the EUR 150 million secured bond with a five-year NOK 1 400 million unsecured bond at a lower interest rate.

“ – It is great to see that the long-term refinancing of the group with a new NOK 1.4 billion bond has been completed at a lower interest rate and lower amount than the previous bond. The previous bond was secured, whereas the new one is unsecured, which makes the refinancing even more impressive,” says Geir Drangsland, CEO of Norske Skog.
details at: https://www.norskeskog.com/investors/press-releases/english-press-releases/positive-market-development?PID=4684&M=NewsV2&Action=1

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