- We have continued the good trend from 2018 and have very good results so far in 2019. Despite falling demand, we have managed to maintain a high production capacity which demonstrates our competitiveness and ability to adjust to market fluctuations. The Group's low debt and good earnings are a very good starting point in the process of introducing the company to new investors, commented Sven Ombudstvedt, Chairman of the Board and Chief Executive Officer (CEO) of Norske Skog.
Cash flow from operating activities was NOK 531 million in the first half of 2019. Cash flow from investing activities was in the same period NOK -180 million. The Group’s EBITDA of NOK 873 mill includes a gain on sale of a hydro power plant in Bruck of NOK 89 million. Demand for newsprint in Europe decreased by 6% through June this year compared to the same period last year. Magazine paper demand in Europe declined with SC paper decreasing 11% and LWC paper decreasing 12%. Norske Skog mills had a 90% capacity utilisation in 1H 2019.
The Ministry of Climate and Environment reversed the decision to abolish Norske Skog Saugbrugs for CO2-compensation, which means that for the years 2018-20 Saugbrugs will receive more than NOK 220 million in CO2-compensation.
- The government's decision to give us CO2-compensation is a significant contribution to maintaining existing operations in Norway and investing in new future-oriented operations. Substantial development work is currently underway to create new revenue streams at several mills. These growth initiatives will, in the time to come, be realized where the investment return becomes most predictable and successful over time, says Ombudstvedt.
Norske Skog’s long-term strategy remains to improve the core business, to convert certain of the Group’s paper machines and to diversify the business within the bioenergy, fibre and biochemical markets.
Norske Skog and the UN Sustainable Development Goals (SDGs)
Norske Skog today publishes an up-to-date CSR report in which ambitions and results are seen in the context of the UN's 17 sustainability goals.
- To further demonstrate our commitment, we have prepared this report aligned with the UN Sustainable Development Goals (SDGs). Norske Skog is committed to contribute to the fulfilment of the SDGs we may impact to the best of our competence, commented Ombudstvedt.
About Norske Skog
Norske Skog is a leading producer of publication paper with strong market positions in Europe, where it occupies a top-tier publication paper position, and Australasia, where Norske Skog is a leading producer of publication paper in a concentrated market.
Norske Skog operates a total of seven profitable paper mills strategically located close to attractive markets and with total paper production capacity of 2.6 million tons, comprising 1.7 million tons of newsprint and 0.9 million tons of magazine paper (supercalandered and coated mechanical). The Norske Skog Group has approximately 2,400 employees, and had in 2018 annual revenue and EBITDA of approximately NOK 12.6 billion and NOK 1.0 billion, respectively.
16 August 2019
Communications and Public Affairs
For further information:
Norske Skog media:
Vice President Corporate Communication and Public Affairs
Mob: +47 917 63 117