Norske Skog achieved a pre-tax profit of NOK 120 million in the quarter and NOK
610 million year-to-date. The group reported an EBITDA of NOK 38 million in the
third quarter of 2025, down from NOK 106 million in the previous quarter. EBITDA
decreased compared to the previous quarter due to lower publication and
packaging paper prices, partly offset by lower cost of fibre and energy. Pre-tax
profit increased due to higher valuation of Norwegian energy contracts.

The formal takeover of the new containerboard machine PM1 at Norske Skog Golbey
in France was completed during the quarter, marking a major step in the group's
long-term transformation from publication paper to packaging paper production.
Norske Skog expects full utilisation during the first half of 2027.

"The formal takeover of PM1 at Golbey is an important achievement for Norske
Skog and a result of strong teamwork across the organisation," says Geir
Drangsland, CEO of Norske Skog. "We are now able to deliver to customers on a
commercial scale and further strengthen our position in the European
containerboard market. Despite temporary ramp-up effects impacting
profitability, the project continues to develop in line with expectations. The
quarter also saw positive developments in reduced fibre costs, which will
support competitiveness going forward."

In the third quarter of 2025, total operating income increased slightly to NOK 2
403 million, up from NOK 2 389 million in the previous quarter. Norske Skog had
total operating earnings of NOK 193 million compared to NOK 74 million in the
previous quarter, and a profit before income taxes of NOK 120 million, up from
NOK 49 million in the previous quarter. Equity increased from NOK 5 877 million
to NOK 5 997 million, resulting in the equity ratio improving from 41.8% to
42.8%. Total assets decreased slightly from NOK 14 068 million to NOK 14 002
million. Net interest-bearing debt increased from NOK 3 960 million to NOK 4 243
million. 

Net cash flow from operating activities was NOK -90 million in the quarter,
mainly due to increased working capital. Net cash flow from investing activities
was NOK -207 million, reflecting ongoing investments in the Golbey PM1 project,
the book paper conversion project at Norske Skog Skogn, and continued
maintenance investments across mills. Net cash flow from financing activities
improved to NOK -55 million from NOK -171 million in the previous quarter.


Market segments
The publication paper segment with a combined annual capacity of 1.3 million
tonnes, experienced slightly lower achieved prices during the quarter, while
deliveries remained at a similar level to the previous quarter. Lower pulpwood
prices and recognised energy refunds helped offset market price declines. Fixed
costs were reduced during the quarter through ongoing cost efficiency measures.

The packaging paper segment, consisting of mills in France and Austria with an
annual capacity of approximately 0.8 million tonnes when fully utilised,
delivered mixed results. Norske Skog Bruck PM3 achieved an EBITDA of NOK 5
million in the quarter. Lower OCC (recycled paper) prices partly mitigated the
market-driven decline in containerboard prices. Norske Skog Golbey PM1 achieved
an EBITDA of NOK -99 million in the quarter, reflecting ramp-up costs and the
lower average price of initial trial deliveries.


Efficiency and other initiatives
Norske Skog has launched several initiatives to improve profitability and cash
flow across all mills, including reviews of both variable and fixed costs and
working capital efficiency. The company continues to evaluate strategic options
for Norske Skog Saugbrugs, with a decision on a potential restart of PM6
expected by the end of 2025.

At Norske Skog Skogn, modifications on PM1 are underway to enable flexible
switching between newsprint and book paper from 2026, ensuring continued
responsiveness to evolving market needs.

The appeal regarding the decision to exclude Norske Skog Skogn and Norske Skog
Saugbrugs from the EU Emissions Trading System (EU ETS) for the period 2026 to
2030 is currently being handled by the Ministry of Climate and Environment. The
exclusion is based on revised qualification criteria under which facilities with
more than 95% of emissions originating from sustainable biomass no longer
qualify for free CO2 allowances. Norske Skog is actively engaging with the
authorities to seek a reversal of this decision.


Outlook 
Uncertainty and profitability pressure in both the market for publication paper
and packaging paper is expected to continue due to raw material price
volatility, excess production capacity, and constantly changing operating
conditions. Norske Skog maintains significant emphasis on reducing the
production costs and working capital to maintain its competitive position in
this environment.

The remaining gross investment at Norske Skog Golbey is expected to be EUR 15
million, and the mill is expected to receive additional EUR 50 million in
investment grants and energy certificates during 2025 to 2027. Production of
recycled containerboard at Norske Skog Golbey (PM1) is expected to reach full
utilisation during the first half of 2027.

Norske Skog monitors the capital and liquidity position closely and has several
ongoing initiatives to secure 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 1.3 million tonnes. Packaging paper and publication paper
are sold through sales offices and agents. Norske Skog has approximately 1 700
employees and the parent company, Norske Skog ASA, a public limited liability
company, is incorporated in Norway and has its 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 CEST, 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