Norske Skog’s EBITDA in the third quarter of 2022 was NOK 508m, a decrease from NOK 905m in the second quarter of 2022.
The company says the third quarter EBITDA was impacted negatively by reduced volumes and higher fixed costs per tonnes following the closure for conversion of PM3 to containerboard production at Norske Skog Bruck, reduced CO2 compensation in Norway and significant increases in energy and raw materials, which more than offset the increase in sales prices for all grades. The containerboard conversion projects are progressing as planned.
“Despite the turbulence in the energy and raw material markets, we have been able to sustain satisfactory margins on our publication paper products. Our conversion projects at Bruck and Golbey are progressing as planned, and will contribute to a long-term sustainable industrial platform,” says Sven Ombudstvedt, CEO, Norske Skog.
The conversion of newsprint machines at Norske Skog Bruck and Norske Skog Golbey will add 760,000 tonnes of cost-competitive and low-emission containerboard capacity. The containerboard production will be fully based on recycled fibre, and will utilise green energy generated from the waste-to-energy facility at the Bruck industrial site and the biomass plant under construction at the Golbey industrial site (Green Valley Energie). The containerboard investments are financed by debt facility agreements with an aggregate amount of €265m, having an average maturity towards the end of 2030.
“We are well prepared to soon serve both the publication paper and the packaging paper markets in a sustainable and profitable manner. We are now fine tuning our entire organisation to be prepared for entering a new era of opportunities within the containerboard markets,” adds Ombudstvedt.
Bruck ceased newsprint production (PM3) in the quarter to enable the conversion of the machine to recycled containerboard production. Staff will remain on site until Bruck enters the packaging paper market in the first quarter of 2023. At Golbey, the conversion of one newsprint machine (PM1) into recycled containerboard production is progressing as planned with expected start-up in the fourth quarter of 2023.