Norske Skog reported an EBITDA of NOK 106 million in the second quarter of 2025
down from NOK 612 million in the previous quarter, mainly due to the final
insurance settlement of NOK 560 million at Norske Skog Saugbrugs in the previous
quarter. Despite continued challenges in the global pulp and paper markets and
low industry utilisation rates, Norske Skog continues to increase its market
share across publication and packaging paper segments and marked the successful
start-up of containerboard production at Norske Skog Golbey PM1 in France.

The major highlight of the quarter was the commissioning of PM1 at the Norske
Skog Golbey mill. The machine produced its first paper reel at the end of May,
with approximately 4 000 tonnes produced during the quarter. The ramp-up will
involve continued customer testing, trial deliveries, and exports in the initial
phase. Utilisation is expected to reach 20-30% in the third quarter of 2025.

"The start-up of PM1 at Golbey marks a key strategic milestone for Norske Skog.
Despite encountering some project-related challenges, we have now successfully
entered the ramp-up phase. We are confident that the machine will follow its
planned utilisation curve and reach full capacity during the first half of 2027.
This project strengthens our position in the containerboard market and
represents an important step in our long-term transformation. In addition, the
investment to convert one machine at Norske Skog Skogn from newsprint to book
paper is part of our long-term transformation process of not being a pure
publication paper supplier," says Geir Drangsland, CEO of Norske Skog.

In the second quarter of 2025, Norske Skog had total operating income of NOK 2
389 million down from NOK 3 101 million in the previous quarter. Operating
earnings of NOK 74 million down from NOK 489 million in the previous quarter,
and profit before income taxes of NOK 49 million down from NOK 442 million in
the previous quarter. Equity increased from NOK 5 646 million in the previous
quarter to NOK 5 877 million in the current quarter. This resulted in the equity
ratio increasing from 39% to 42%. Net interest-bearing debt decreased from NOK 4
087 million in the previous quarter to NOK 3 960 million in the current quarter.

In publication paper, lower deliveries due to planned and unplanned stops and
slightly weaker prices were offset by lower cost of materials. 

In packaging paper, Norske Skog Bruck PM3 continued to perform well and
delivered an EBITDA of NOK 26 million. The segment had a negative EBITDA of NOK
52 million due to relatively high fixed costs during the ramp-up phase at Norske
Skog Golbey.

Norske Skog maintains a strong capital position. Proceeds from the sale of
Boyer, sale of CO2 allowances, and energy refund were received during the
quarter. An agreement with lenders was reached to revise certain loan repayment
schedules and release restricted cash accounts, supporting liquidity.

Norske Skog continues to evaluate strategic options at Norske Skog Saugbrugs,
including a potential restart of PM6, closure of PM4 and PM5, and an increase in
production capacity from 200 000 to 240 000 tonnes. A final decision is expected
in the second half of 2025. The BCTMP project has been put on hold due to high
investment requirements and challenging market conditions.

Geir Drangsland, CEO of Norske Skog, says: "Together with the management at
Norske Skog Saugbrugs, we have thoroughly reviewed all strategic opportunities
for the mill. The ongoing review of a potential restart of PM6 reflects our
continued commitment to long-term industrial operations at Norske Skog
Saugbrugs, while weighing sound financial discipline and a strong focus on
future profitability."

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.

Norske Skog has appealed the decision to the Norwegian Environment Agency of
excluding 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 to the Ministry of Climate and Environment. Facilities exceeding 95% of
emissions deriving from sustainable biomass will no longer qualify for free CO2
allowances. Norske Skog is actively working to reverse 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 20-25
million, and the mill is expected to receive additional EUR 52 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 its capital and
liquidity position closely and has several ongoing initiatives to secure
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