Strong demand for Norske Skog's products in all regions resulted in high capacity utilisation and net profit in the 3Q 2016 of NOK 190 million ($23.3 million). This demonstrates the long-term trend of good performance. So far this year, the net profit is NOK 430 million ($52.8 million), as the company says in the press release received by Lesprom Network.
Gross operating earnings (EBITDA) in the 3Q 2016 was NOK 251 million ($30.8 million), which was a decrease from NOK 335 million ($41.1 million) in the 2Q, mainly due to somewhat higher energy and recovered paper cost and weaken pound.
Net profit in the 3Q was NOK 190 million ($23.3 million) compared with a negative NOK 874 million ($107.2 million) in the 3Q 2015.
“Despite a comprehensive refinancing of the group this year, the business units have completed major cost reductions and seen significant progress on new growth projects. The green shift transformation of Norske Skog into new segments will be more prominent in the years to come. The improved market balance should allow for a substantial increase in sales prices going forward, especially after significant capacity closures in Europe and North America combined with a flattening of the demand curve,” says Sven Ombudstvedt, CEO of Norske Skog.
Total annual production capacity for the group is 2.7 million. 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 3Q 2016 was 93% compared with 92% in the 2Q.
Norske Skog is a Norwegian pulp and paper company. The corporation is the world's largest producer of newsprint and magazine paper.
