NSKOG: Improved results and strengthened financial position

Norske Skog delivered EBITDA of NOK 448 million and a profit before income taxes
of NOK 251 million in the third quarter of 2026. The results were positively
impacted by a gain of NOK 338 million from the sale of property to Norwegian
Nuclear Decommissioning (NND). Higher prices and deliveries supported
publication paper, while production challenges at Norske Skog Golbey PM1 reduced
packaging paper volumes. The production challenges are expected to be improved
during the fourth quarter of 2026. Following the quarter, liquidity was
strengthened by NOK 770 million from receipt of proceeds from the NND
transaction.

"The third quarter reflects resilient operations in challenging markets. Price
increases and cost-reduction initiatives partly mitigated higher costs for
energy, fuel and chemicals, while the NND transaction significantly strengthened
our financial flexibility through receipt of NOK 770 million following the
quarter. Our priorities remain to improve profitability, maintain disciplined
working capital and complete the operational ramp-up at Golbey," says Geir
Drangsland, CEO of Norske Skog.

In the third quarter of 2026, total operating income was NOK 3 015 million,
compared with NOK 2 584 million in the previous quarter. Norske Skog reported
EBITDA of NOK 448 million and a profit before income taxes of NOK 251 million,
compared with EBITDA of NOK 73 million and a loss before income taxes of NOK 163
million in the second quarter of 2026. The EBITDA margin increased to 15% from
3%. The equity ratio was 41%, cash was NOK 577 million and net interest-bearing
debt was NOK 4 428 million at the end of the quarter. 

The sale of property to NND contributed a gain of NOK 338 million in the
quarter. Norske Skog received cash proceeds of NOK 770 million in early October,
of which approximately NOK 50 million is allocated to dismantling. The company
has scheduled significant debt repayments during the fourth quarter of 2026.


Market segments
The publication paper segment delivered EBITDA of NOK 431 million in the third
quarter, compared with NOK 86 million in the previous quarter. Deliveries
increased to 282 thousand tonnes from 280 thousand tonnes, while operating
revenue increased to NOK 1 947 million from NOK 1 898 million. Slightly higher
prices and deliveries, the NND gain and continued efficiency improvements
supported the result. These effects were partly offset by higher costs of
materials, particularly energy. 

The packaging paper segment delivered EBITDA of NOK 0 million, compared with NOK
1 million in the previous quarter. Operating revenue increased to NOK 535
million from NOK 516 million, supported by higher prices, while deliveries
decreased to 115 thousand tonnes from 122 thousand tonnes. Production at Golbey
PM1 was affected by regional drought, unplanned maintenance at the water
effluent treatment facility and press crushing issues. The challenges are
expected to improve during the fourth quarter. Norske Skog Bruck PM3 operated at
full capacity, delivering 55 thousand tonnes and EBITDA of NOK 40 million, while
Golbey PM1 delivered 60 thousand tonnes and EBITDA of NOK -40 million. Depending
on CEE certificate prices, the group expects energy certificates with an
estimated market value of approximately EUR 23 million in 2027 and EUR 52
million in 2029.


Projects and other initiatives
At Norske Skog Saugbrugs, Norske Skog plans to rebuild PM6 for flexible
production of 300 000 tonnes of TMP-based kraftliner or 230 000 tonnes of SC
magazine paper. The estimated investment is around NOK 850 million, with
start-up expected in the first half of 2028. The project is intended to restore
profitability and provide a long-term growth outlook for the mill. The rock wall
has been secured and the PM6 building restored, with only limited works
remaining. The rebuild will utilise existing TMP capacity, energy infrastructure
and fibre-processing competence.
Saugbrugs is also evaluating an opportunity to establish an 80-100 MW data
centre. The site is adjacent to the Halden transformer station and has an
existing grid agreement supported by high-capacity power lines. The site also
offers fibre-network access, freshwater infrastructure and road, rail and sea
connections. The zoning process is expected to restart during the fourth quarter
of 2026.

At Bruck, a 20 MW Battery Energy Storage System is being installed to support
grid services and optimise the mill's energy position. At Norske Skog Skogn, the
successful launch of NOR Book and the development of NOR Strato packaging paper
support continued product diversification. At Golbey, the focus remains on
improving PM1 operations and reaching full utilisation during 2027.


Outlook
Norske Skog remains focused on increasing market share despite an uncertain
operating environment and challenging market conditions. Price increases
implemented during the year are expected to deliver their full effect in the
coming quarters. The company continues to prioritise cost reductions and strict
working capital discipline to maintain competitiveness. Energy cost surcharges
will be considered if necessary, while market-related downtime is being assessed
to address cost pressures and safeguard profitability.

Across all mills, Norske Skog is evaluating profitable growth projects to
further diversify revenue streams, with particular emphasis on the ramp-up of
PM1 at Norske Skog Golbey and the achievement of full utilisation during 2027.
At Norske Skog Saugbrugs, profitability is expected to be restored following the
rebuild of PM6, which is scheduled for completion in the first half of 2028.

Norske Skog continues to closely monitor the capital and liquidity position and
is pursuing several initiatives to strengthen the financial performance and
competitive position going forward. 


About Norske Skog
Norske Skog is a producer of packaging paper and publication paper across four
mills in Europe. Packaging paper includes testliner and fluting and publication
paper includes newsprint and magazine paper. The annual production capacity of
packaging paper is 0.8 million tonnes, and the annual production capacity of
publication paper is 1.2 million tonnes. Packaging paper and publication paper
are sold through sales offices and agents. Norske Skog has approximately 1 650
employees and the parent company, Norske Skog ASA, a public limited liability
company, is incorporated in Norway and has the head office in Oslo. The company
is listed on Oslo Stock Exchange with the ticker NSKOG.


Presentation and quarterly material
The company will arrange a Teams-webinar today at 08:30 CET, which can be
attended by clicking the webinar link on the front page of the
www.norskeskog.com.
The quarterly board of directors' report, the presentation, the financial
statements and the press releases are available on www.norskeskog.com,  and
published on www.newsweb.no under the ticker NSKOG. If you want to receive
future Norske Skog press releases, please subscribe through the website of the
Oslo Stock Exchange www.newsweb.no. 
 

Norske Skog
Communications and Public Affairs


For further information:

Norske Skog media:
Vice President Corporate Communication and Public Affairs
Carsten Dybevig
carsten.dybevig@norskeskog.com
Mob: +47 917 63 117

Norske Skog Investor Relations:
Senior Vice President Corporate Finance
Even Lund
even.lund@norskeskog.com
Mob: +47 906 12 919
arsten.dybevig@norskeskog.com\
Mob: +47 917 63 117\
\
Norske Skog Investor Relations:\
Senior Vice President Corporate Finance\
Even Lund\
even.lund@norskeskog.com\
Mob: +47 906 12 919\