Norske Skog's EBITDA in the third quarter of 2024 was NOK 91 million, a decrease
from NOK 471 million in the second quarter of 2024. Norske Skog implemented
price increases for both containerboard and newsprint during the quarter to
mitigate continued cost increases.	Norske Skog received excellent feedback from
containerboard customers as deliveries continued to grow. Despite signs of
positive market developments for Norske Skog in the publication and
containerboard markets, these markets are still experiencing excess capacity,
thus closures are still required. 

" - We are receiving excellent feedback from our customers on the quality of our
containerboard products, which bodes well for our plan to deliver a total of
760,000 tonnes of packaging paper from Bruck and Golbey to the market in the
coming years. We are particularly pleased to have strengthened our position in
the newsprint market by increasing our market share through higher sales volumes
in the third quarter of 2024 compared to the same quarter last year, especially
in a declining market for publication paper," says Geir Drangsland, CEO of
Norske Skog.

Cash flow from operations was NOK -272 million in the quarter compared to NOK
299 million in the previous quarter. The third quarter operating cash flow was
negatively impacted by an increase in working capital of NOK 261 million due to
recognition of CO2-related items and higher inventories. Operating earnings in
the third quarter of 2024 were NOK -13 million compared to operating earnings in
the second quarter of 2024 of NOK 364 million. Other operating earnings
decreased because of insurance recognition at Norske Skog Saugbrugs of NOK 338
million in the previous quarter compared to NOK 25 million in the third quarter.


Loss before tax in the quarter was NOK -156 million compared to profit before
tax of NOK 311 million in the previous quarter. Net interest-bearing debt
increased in the period from NOK 2 970 to 3 717 million at the end of the
quarter mainly due to investments at Norske Skog Golbey, increase in working
capital, and weaker NOK influencing EUR-denominated debts. The equity ratio was
41%. 

" - We are satisfied with the latest long-term financing of the group with
signing a NOK 1.4 billion bond in the second quarter and a NOK 500 million
green-term loan at Norske Skog Skogn in the third quarter," says Geir
Drangsland, CEO of Norske Skog. 


Operations

Total annual publication paper production capacity for the group is 1.6 million,
with 1.3 million tonnes in Europe and 0.3 million tonnes in Australia. Norske
Skog Bruck (PM3) started production of recycled containerboard paper in second
quarter of 2023, and Norske Skog Golbey (PM1) plans to start in 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%
as of August 2024 compared to the same period last year. For magazine paper the
demand decreased by 6%, with supercalendered paper decreasing 10% and
lightweight coated paper decreasing 2% as of August 2024 compared to the same
period last year. According to PPPC trade statistics for Australia, demand for
newsprint and coated mechanical decreased by 26% and 2%, respectively, through
August 2024 compared to the same period last year. 


Publication paper

Operating income decreased from the previous quarter mainly due to the
recognition of NOK 338 million in insurance at Norske Skog Saugbrugs in the
second quarter, compared to NOK 25 mill in the third quarter. Slightly higher
sales prices and sales volumes contributed positively during the period. Lower
energy prices contributed contributed negatively the revenue from sale of excess
energy compared to the previous quarter. Despite the positive demand sentiment
in certain areas of the publication paper market, there is still a market
imbalance for publication paper.

Variable costs per tonne increased in the quarter, both in absolute terms and
per tonne for cost of materials mainly caused by higher pulpwood and recovered
paper prices. Distribution costs increased slightly in the quarter due to higher
freight rates. Fixed costs both in absolute terms and per tonne decreased
somewhat in the quarter due to lower costs. Group capacity utilisation was 91%
in the quarter, 91% in Europe and 91% in Australasia.


Packaging paper

The packaging paper machine at Norske Skog Bruck is operating according to the
ramp-up plan. The containerboard production will reach full capacity utilisation
in the second half of 2025. Norske Skog Golbey will start commercial production
in the first quarter of 2025. Once at full utilisation, the machines are
expected to generate an annual EBITDA of EUR 70-80 million, based on historical
prices and margins seen in the market. EBITDA in the period was slightly
positive due to higher delivered volumes and higher sales prices. 


Key figures, third quarter of 2024

NOK million (unless otherwise stated)	
                               Q324   Q224   Q323   YTD24   YTD23
Income statement	 	 	 	 	 
Total operating income	      3 006  3 217  3 036   8 911   9 760
EBITDA	                         91    471    327     637   1 382
Operating earnings	        -13    364     36     175     267
Profit before tax	       -156    311    112    -227	4
 	 	 	 	 	 
EBITDA margin %	
                                3.0   14.6   10.8     7.2    14.2
Capacity utilisation publication paper %	
                                 91	88     89      88      81
					
Cash flow					
Net cash flow from operating activities	
                               -272    299    173     -43     956
Net cash flow from investing activities	
                               -289   -104   -949    -771  -2 012

Balance	                         30.09.24	30.06.24	30.09.23
Total assets	                   14 824	  15 201	  13 898
Equity                              6 132	   6 138           5 880
Equity %	                       41	      40	      42


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
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. 

-	This investment marks an important step in Norske Skog's development, with the
goal of increasing long-term value for all our stakeholders. Increased focus on
environmentally friendly products and the continued rise in e-commerce have
created a significant demand for renewable packaging solutions. The production
of recycled packaging at Golbey will meet this demand with cost-leading and
environmentally friendly capacity. Golbey's industrial site, centrally located
in continental Europe, is well positioned for the large packaging market, with
established access to recycled fibre," says Drangsland.


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. To clarify permits and environmental issues, Norske Skog
Saugbrugs has met with the Norwegian Environment Agency. 
The new BCTMP line will produce approximately 300 000 tons 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