Norske Skog's gross operating earnings (EBITDA) in the 1Q 2017 were NOK 158 million ($18.9 million), a seasonal decrease from NOK 221 million ($26.5 million) in the 4Q 2016.

Newsprint

Norske Skog's EBITDA decreased to NOK 158 million ($18.9 million) in 1Q

Norske Skog's gross operating earnings (EBITDA) in the 1Q 2017 were NOK 158 million ($18.9 million), a seasonal decrease from NOK 221 million ($26.5 million) in the 4Q 2016. The European units contributed to gross operating earnings as expected ; whereas, the Australasian units had lower than expected gross operating earnings due to more low-margin export sales to Asia and production problems at the Boyer mill.

Operating earnings in the 1Q 2017 was NOK 2 million ($239,627), compared to negative operating earnings of NOK 73 million ($8.7 million) in the 4Q 2016.

Net loss in the 1Q was NOK 274 million ($32.8 million), compared with a net loss of NOK 124 million ($14.8 million) in the 4Q 2016. Cash flow from operating activities before net financial items seasonally decreased from NOK 232 million ($27.8 million) in 4Q 2016 to NOK 175 million ($21 million) in 1Q 2017.

“In 2017, we will continue to make our units more competitive and robust through cost reductions and realizing new growth initiatives. A comprehensive cost reduction and efficiency program will be launched with an aim to improve the annual performance with NOK 500 million ($60 million), further details will be disclosed in connection with the release of the 2Q results. On the pricing side, we have raised our export prices to Asia beginning from 2Q, and the market balance for newsprint and SC magazine paper in Europe is also encouraging,” says Sven Ombudstvedt, CEO of Norske Skog.

Norske Skog is a global leader in production of newsprint and magazine paper. The company has 9 paper mills around the world.