Norske Skog's gross operating earnings (EBITDA) in the 3Q 2017 were NOK 143 million ($17.8 million), a decrease from NOK 190 million ($23.7 million) in the 2Q 2017, as the company said in the press release received by Lesprom Network.
Gross operating earnings declined despite an increase in sales volume in Europe due to NOK appreciation, and less domestic demand in Australasia resulted in more low-margin export sales. Operating earnings in the 3Q was NOK 73 million ($9 million) compared to negative operating earnings of NOK 52 million ($6.5 million) in the 2Q 2017.
Net loss in the 3Q was NOK 9 million ($1 million) compared to a net loss of NOK 546 million ($68 million) in the 2Q 2017, mainly due to non-cash currency effects on debt and changes in the valuation of power contracts.
“We are very pleased with the high production efficiency at the mills considering the difficult financial position of the group. Rising input factor costs combined with an improved market balance, reflecting significant capacity closures and conversions in the industry this year, demands higher publication paper price into 2018,” says Lars P.S. Sperre, 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.
