Norske Skog decreased profitability and operating revenues in 1Q2017. According to the disclosed information, the company’s operating revenues in the period totaled SEk 2,693 million (around USD 314 million), generating NOK 158 million of EBITDA (5.9% margin).
Sven Ombudstvedt, CEO of Norske Skog, commented:
” In 2017, we will continue to make our units more competitive and robust through cost reductions and realizing new growth initiatives. A comprehensive cost reduction and efficiency program will be launched with an aim to improve the annual performance with NOK 500 million, further details will be disclosed in connection with the release of the Q2 results. On the pricing side, we have raised our export prices to Asia beginning from Q2, and the market balance for newsprint and SC magazine paper in Europe is also encouraging.
We are in a very demanding industry. The high leverage and high financing costs challenge the fulfillment of our growth initiatives in 2020 and long term sustainability. We will explore every available opportunity to improve the operating and financial position of the group in the months to come. The aim is eventually to construct a balanced proposal acceptable for all investors, and remove a major obstacle for a long needed European consolidation.”
In 4Q2016 Norske Skog reported EBITDA margin decrease to 7.2%.
Earlier Research Council of Norway granted NOK 15.7 million (around USD 1.8 million) over four years period to Norske Skog to further develop the production of biogas fuel at the Norske Skog in Halden, Norway.
About Norske Skog:
The company is a leading producer of newsprint and magazine paper. The company has 9 paper mills around the world.