Profit after net financial items for the 4Q 2015 was SEK 1 million ($116,816), a weak result mainly relating to problems in connection with the production start-up after the maintenance shutdown in Vallvik Mill.
Net turnover for both the 4Q and full-year 2015 increased 16% compared with the previous year. 4Q net turnover increased to SEK 429 million ($50.1 million).
Production volumes in the 4Q increased by 7% and for the full year, production volumes increased by 8% compared with the same period the previous year. Both Rottneros Mill and Vallvik Mill set new records for annual production.
Per Lundeen, CEO and President, said: “2015 was an extremely favourable year for the Rottneros Group. The year as a whole represented a significant improvement in earnings, with operating profit more than doubling to SEK 263 million ($30.7 million). We can thus report a return on capital employed of 25%.
“This means that we have met our target: return on capital employed shall exceed this figure for comparable pulp-producing companies. As a result of our strong financial position, in early November the Board of Directors also decided to propose an extra dividend of SEK 0.40 per share. The resolution was approved in December by an Extraordinary General Meeting.
“However, the last quarter of the year was weak. Profit after net financial items was SEK 1 million ($116,816), to be compared with SEK 13 million ($1.5 million) for the same period in 2014. The 4Q is normally seasonally weak because of Vallvik Mill's annual maintenance shutdown. This year the start-up period was more difficult than planned following a number of capacity-enhancing investments that were made within the framework of the Group's ongoing Agenda 500 investment plan. The lengthy start-up process had a negative impact on delivery volumes in late November and in December. This situation, combined with a lower price/mix as well as higher maintenance and production costs comprise the basis for the weaker earnings.”
Rottneros produces market pulp and has an annual production capacity of around 400,000 tonnes of pulp, produced at two mills in Sweden.
