Norske Skog reported an EBITDA of NOK 612 million in the first quarter of 2025
up from NOK 33 million in the previous quarter, mainly due to the final
insurance settlement of NOK 560 million at Norske Skog Saugbrugs. Norske Skog
continued to increase the market share for both publication paper and packaging
paper in the quarter, despite continued pressure on utilisation rates and
profitability in the industry. 

"Containerboard production at Norske Skog Golbey will start in about one week,
marking the completion of a significant investment project for the group. This
EUR 320 million investment will be a major milestone in the group's
transformation from a pure publication paper producer to also become a packaging
paper supplier. With this large and modern production line, fully based on
recycled fibre, we will increase our total delivery capacity by more than 35%
and vastly enhance our ability to serve the growing demand for containerboard,"
says Geir Drangsland, CEO of Norske Skog. 

In the first quarter of 2025, Norske Skog had total operating income of NOK 3
101 million up from NOK 2 666 million in the previous quarter. Operating
earnings of NOK 489 million up from NOK -353 million in the previous quarter,
and profit/loss before income taxes of NOK 442 million up from NOK -470 million
in the previous quarter. Equity increased from NOK 5 384 million in the previous
quarter to NOK 5 646 million in the current quarter. This resulted in the equity
ratio increasing from 37% to 39%. Net interest-bearing debt decreased from NOK 4
119 million in the previous quarter to NOK 4 087 million in the current quarter.

During the quarter, Norske Skog Saugbrugs reached a final insurance settlement
following the rockslide in April 2023. The settlement resulted in a payment of
NOK 540 million and EBITDA recognition of NOK 560 million in the quarter, which
is also the main reason for the increase in operating income and operating
earnings. 

In addition, Norske Skog signed a share sale agreement with Boyer Capital for
the sale of the Australasian operations for approximately NOK 190 million. The
transaction was completed on 16 April and cash proceeds of approximately NOK 150
million, net of transaction costs and working capital, was received in the
second quarter of 2025. At Norske Skog Saugbrugs, studies for production of
bleached chemi-thermomechanical pulp (BCTMP) and restart of PM6 are under review
for final decision.

The Norwegian Environment Agency has issued a decision to exclude Norske Skog
Skogn and Norske Skog Saugbrugs from the EU Emissions Trading System (EU ETS)
for the period 2026 to 2030 due to revised qualification criteria. Facilities
exceeding 95% of emissions deriving from sustainable biomass will no longer
qualify for free CO2 allowances. Norske Skog will appeal the decision to the
Ministry of Climate and Environment.


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

Norske Skog continues to increase the production of recycled containerboard at
Norske Skog Bruck (PM3) and expects full utilisation during the second half of
2025. Production of recycled containerboard at Norske Skog Golbey (PM1) is
expected to reach full utilisation during the first half of 2027. The remaining
gross investment at Norske Skog Golbey is expected to be EUR 35-40 million, and
the mill is expected to receive additional EUR 50 million in investment grants
and energy certificates during 2026 and 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 leading producer of publication paper with strong market
positions and customer relations in Europe. The Norske Skog group operates four
mills in Europe, which produce publication paper, recycled packaging paper,
energy and bioproducts. The annual publication paper production capacity is 1.2
million tonnes. The annual production capacity of packaging paper will be 0.8
million tonnes following the start-up of containerboard production at Golbey in
2025.  Norske Skog aims to further diversify the operations and continue the
transformation into a growing and high-margin business through a range of
promising energy and bio product development projects. The Group has
approximately 1 700 employees, is headquartered in Norway and listed on the Oslo
Stock Exchange under 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