Norske Skog’s EBITDA in the Q2 2024 was NOK 471 million ($43.9 million), an increase from NOK 76 million ($7 million) in the Q1 2024. The Q2 EBITDA was positively impacted by insurance at Norske Skog Saugbrugs of NOK 338 million ($31.5 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.
“We are receiving excellent feedback from our customers on our containerboard product quality, which is promising for our plan to deliver a total of 760,000 tonnes of packaging paper from Bruck and Golbey into the market in the coming years. In the quarter, we launched plans to start BCTMP-production at Saugbrugs. This will secure jobs and further strengthen the competitiveness of Saugbrugs. Despite declining markets and reduced machine capacities, we are very pleased to have achieved an increased market share with higher sales volumes in the Q2 2024 compared to the same quarter last year. This means that Norske Skog’s market position with the paper industry has been strengthened,” says Geir Drangsland, CEO of Norske Skog.
Cash flow from operations was NOK 299 million ($27.9 million) in the quarter compared to NOK -69 million ($6.4 million) in the previous quarter. The Q2 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 Q2 2024 were NOK 364 million ($33.9 million) compared to operating earnings in the Q1 2024 of NOK -177 million ($16.5 million). The operating earnings in the quarter were affected by insurance at Norske Skog Saugbrugs of NOK 338 million ($31.6 million), non-cash changes in fair value of energy contracts in Norway amounting to NOK 44 million ($4.1 million) and depreciation of NOK 128 million ($11.9 million).
Profit before tax in the quarter was NOK 311 million ($29.0 million)compared to loss before tax of NOK -382 million ($35.6 million) in the previous quarter.
Norske Skog is a leading producer of publication paper with strong market positions and customer relations in Europe and Australasia.
