European sales prices increased in the quarter, whereas the cost of energy decreased. It was somewhat offset by more low-margin Asian newsprint export from Australasia.
"The market looks brighter. We are currently running at full capacity at our mills, but will continue to perform active portfolio management of our machine capacity when necessary. The announcements of large permanent capacity cuts and machine conversions in Europe and North-America in the last years in our product segments have been supportive to the market balance, and thus future price levels," says Sven Ombudstvedt, President and CEO of Norske Skog.
The net profit of NOK 11 million ($1.3 million) in the 1Q 2016 compared to a loss of NOK 828 million ($102 million) in the previous quarter, which was heavily impacted by a write-off of tax-assets amounting to about NOK 500 million ($61.5 million)and unrealized, non-cash, currency loss of about NOK 100 million ($12.3 million).
Total annual production capacity for the group is 2.7 million tonnes. In Europe, the group capacity is 2 million tonnes, while in Australasia the capacity is 0.7 million tonnes. Capacity utilization for the group in the 1Q was 95% compared with 89% in the 4Q, as a result of active capacity management.
Norske Skog is a Norwegian pulp and paper company. The corporation is the world's largest producer of newsprint and magazine paper.
