May 06, 2010. /Lesprom Network/. Norske Skog reported gross operating earnings (EBITDA) of NOK 275 million ($46.3 million) in the 1Q 2010, down from NOK 472 million ($79.4 million) in the previous quarter and NOK 504 million ($84.8 million) in the 1Q 2009. The weak results were mainly caused by low prices for newsprint and magazine paper in Europe, combined with increased input factor costs, company said in a statement received by Lesprom Network. Results after taxes fell from a profit of NOK 667 million ($112 million) in the 4Q 2009 to a loss of NOK 1,153 million ($193,934) in the 1Q 2010. Results were largely influenced by a decrease in value of the group's energy portfolio of NOK 954 million ($160 million). Reduction in the value of the energy portfolio has no cash effect. Net cash flow from operations fell from NOK 537 million ($90 million) in the 4Q 2009 to NOK 101 million ($17 million) in the 1Q 2010 as a result of weak gross operating earnings. Realisation of gains from currency hedging contributed to a positive cash flow from financial items in the 1Q. Interest payments were relatively low in the 1Q and are expected, as in previous years, to be significantly higher in the 2Q. The group's net debt was reduced by NOK 130 million ($21.9 million) in the 1Q. The gearing ratio increased from 0.80 at year end to 0.86 by the end of the 1Q. Net interest bearing debt was just below NOK 9.5 billion ($1.6 billion) at the end of the 1Q 2010.