Norske Skog reports 4Q net loss of NOK 124 million
(Norway, Feb. 09, 2017) Norske Skog’s gross operating earnings (GOE) was NOK 1 049 million ($126 million) in 2016. A high capacity utilisation and good operating performance throughout 2016 resulted in the best annual gross operating earnings since 2012. Net profit in 2016 was NOK 306 million ($36.8 million), despite NOK 1.4 billion ($168 million) in impairment.
Gross operating earnings (EBITDA) in the 4Q 2016 was NOK 221 million ($26.6 million), which was a decrease from NOK 251 million ($30.2 million) in the 3Q, mainly due to somewhat higher spot electricity prices in Norway, recovered paper cost and a weakened pound, partly by seasonally higher sales volumes and better average sales price for magazine paper at Boyer. Net loss in the 4Q was NOK 124 million ($14.9 million) compared with a profit of NOK 190 million ($22.9 million) in the 3Q 2015.
“Despite major focus on the refinancing of the group last year, our business units delivered strong operating results last year. In 2017, we will continue to make our units more competitive and robust through cost reductions and realizing new growth initiatives. The improved market balance should allow for increased sales prices going forward, especially after significant capacity closures in Europe and North America combined with a flattening of the demand curve,” says Sven Ombudstvedt, CEO of Norske Skog. (Source: press release)