The EBITDA improved from 2Q due to foreign exchange effects but was somewhat offset by lower sales prices with challenging export markets in Australasia. The weakening of Norwegian krone was the main reason for the NOK 0.9 billion non-cash increase in the net interest bearing debt in the quarter.
The net loss of NOK 742 million ($90.6 million) in the 3Q 2015 was significantly impacted by negative unrealised foreign exchange losses amounting to NOK 525 million ($64 million) on foreign denominated debt due to a significant depreciation of NOK.
Net interest-bearing debt increased by NOK 0.9 billion from the end of 2Q 2015, from NOK 7.5 billion ($0.9 billion) to NOK 8.4 billion ($1 billion), mainly due to unfavourable foreign exchange effects.
Cash flow from operating activities before net financial items was NOK 2 million (NOK 89 million in Q2 2015). The working capital increased by NOK 134 million ($16.3 million) in the 3Q due to higher sales at Saugbrugs.
“We are satisfied with the cost development in Europe, but we are challenged by low export prices from Australasia. We meet the challenging market for publication paper by cash driven commercial policy, and continued efforts to cut costs and improve productivity. We are also considering several options for the upcoming bond maturities,” says Sven Ombudstvedt, President and CEO of Norske Skog.
Total annual production capacity for the group is 2.8 million tonnes. In Europe the group capacity is 2.1 million tonnes, while in Australasia the capacity is 0.7 million tonnes. Capacity utilization for the group in the 3Q was 85%, compared to 82% in the 2Q.
Norske Skog is one of the world’s largest suppliers of newsprint and an important source of paper for the magazine and directory sectors.
