Norske Skog's EBITDA in the fourth quarter of 2024 was NOK 33 million, a
decrease from NOK 88 million in the third quarter of 2024. EBITDA in the quarter
was influenced by continued pressure from price increases for energy and
pulpwood. Norske Skog Golbey will start production of packaging paper towards
the end of the first quarter of 2025, which will increase the Group's total
capacity with 36%. Proceeds from the final insurance settlement from the
rockslide at Norske Skog Saugbrugs will improve the financial position and
liquidity by NOK 540 million in the beginning of 2025. The publication paper
markets are still challenging although several market closures have improved the
market balance for newsprint and magazine paper. 

"In the first quarter of 2025, we will proudly launch containerboard production
at Norske Skog Golbey, the group's most significant investment to date and a
bold step into the future. This marks a major milestone in our transformation
from a traditional publication paper producer to a dynamic supplier of
containerboard. With a cutting-edge production line powered entirely by recycled
fibre, we are increasing our capacity by more than one-third, strengthening our
ability to serve the growing demand in the containerboard market," says Geir
Drangsland, CEO of Norske Skog. 

The cash flow from operations in the quarter was NOK 28 million due to reduced
working capital following sale of CO2 allowances. Operating earnings in the
fourth quarter of 2024 were NOK -353 million compared to operating earnings in
the third quarter of 2024 of NOK -5 million. The operating earnings in the
quarter were negatively affected by non-cash changes in fair value of energy
contracts in Norway amounting to NOK 137 million, and negatively affected by NOK
121 million in impairments relating to assets at Norske Skog Saugbrugs. 

Loss before taxes in the quarter was NOK -555 million compared to NOK -141
million in the previous quarter. The net profit was negatively affected by
non-cash currency changes in euro denominated debt and foreign exchange
contracts. Net interest-bearing debt increased from NOK 3 717 to 4 119 million
at the end of the quarter. The equity ratio was 37%.

Operations
Total annual publication paper production capacity for the group was 1.6 million
tonnes during 2024. Norske Skog has discontinued the reporting segment
Publication Paper Australasia after initiating a sales process in December 2024.
The Group capacity of publication paper will then become 1.3 million tonnes.
Norske Skog Golbey (PM1) plans to start packaging paper production towards the
end of the first quarter of 2025. Norske Skog will after the ramp-up of Norske
Skog Bruck and Norske Skog Golbey have an annual capacity of 760 000 tonnes of
packaging paper production. 

According to Euro Graph, demand for standard newsprint in Europe decreased by 1%
through November 2024 compared to the same period last year. SC magazine paper
demand decreased by around 9%. LWC paper demand decreased by around 2% through
November compared to the same period last year. According to PPPC trade
statistics for Australia, demand for newsprint decreased by 16% and increased
for coated mechanical by 1% through November 2024 compared to the same period
last year. 

 
Publication paper
Operating income increased from the previous quarter mainly due to higher
deliveries and sale of excess energy. Slightly higher publication paper sales
prices due to mix effects were more than offset by higher pulpwood and energy
prices compared to the previous period. The increase in sales prices did not
absorb the increased cost of materials in the period. 

Variable costs per tonne increased in the quarter, both in absolute terms and
per tonne for cost of materials mainly due to pulpwood and energy prices.
Distribution costs were unchanged in the period but somewhat lower on a per
tonne basis. Fixed costs per tonne increased both on an absolute level and per
tonne level due somewhat higher employee expenses. Group capacity utilisation
was 87% in the quarter, 87% in Europe and 86% in Australasia. 

Packaging paper
The packaging paper machine at Bruck continues to ramp-up its production,
although a commercially challenging market reduced deliveries in the quarter.
The containerboard production will reach full capacity utilisation during the
third year of production. The operating income for 2024 consists of revenue from
deliveries and gate fees from waste incineration, which were higher than the
variable and fixed costs.

Key figures, fourth quarter of 2024 *
NOK million (unless otherwise stated)	
                       Q4 2024	Q3 2024	Q4 2023	YTD 24	YTD 23
Income statement	 	 	 	 	 
Total operating income	2 666	2 511	3 195	10 173	11 557
EBITDA	                  33	88	680	736	2 062
Operating earnings	-353	-5	627	-60	934
Profit (loss) before tax -470	-144	588	-566	645
 	 	 	 	 	 
EBITDA margin %	        1.2	3.5	21.3	7.2	17.8
Capacity utilisation publication paper %	
                         87	91	83	87	80
					
Cash flow					
Net cash flow from operating activities	
                         28	-272	973	-15	1 928
Net cash flow from investing activities	
                        -428	-289	-677	-1 198	-2 689

Balanse	             311224	300924	311223
Total assets	      14 467	14 824	14 755	
Equity	                5 384	6 132	6 161	
Equity %	         37	41	42

*)Restated figures to reflect the discontinuation of the publication paper
Australasia segment


Status projects

Norske Skog Golbey conversion projects
At Norske Skog Golbey, the conversion of the newsprint paper machine (PM1) into
recycled containerboard paper production is progressing towards start-up in the
end of the first quarter of 2025. Norske Skog Golbey will eventually add 550 000
tonnes of new low-emission packaging paper capacity after ramp-up is completed,
which will be fully based on recycled fibre. Along with the containerboard
production at Bruck, Norske Skog will at full capacity utilisation, deliver 760
000 tonnes of packaging paper to the market. Golbey PM1 will utilise renewable
energy generated from the newly commissioned biomass plant at the Golbey
industrial site (Green Valley Energie). This energy plant will be the largest of
its kind in France. 
 
Norske Skog Saugbrugs BCTMP-production
Norske Skog Saugbrugs has started a main study aiming to enter the Bleached
Chemi-ThermoMechanical Pulp (BCTMP) market by starting production at Norske Skog
Saugbrugs in Halden. Currently, Norske Skog Saugbrugs has engaged technical and
environmental consultants, who are working with potential machinery and
equipment suppliers. 

The new BCTMP line will produce approximately 300 000 tonnes of competitive pulp
to meet the growing demand, especially for products in the packaging market. The
BCTMP production will be based on fresh fibre, and the mill already has access
to adequate energy capacity. Norske Skog Saugbrugs investment will exploit
existing machinery, equipment, and infrastructure