Norske Skog reported an EBITDA of NOK 612 million ($59 million) in the Q1 2025 up from NOK 33 million ($3.2 million) in the previous quarter, mainly due to the final insurance settlement of NOK 560 million ($54 million) at Norske Skog Saugbrugs, Norway. 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 Euro 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 Q1 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 ($47.2 million) up from NOK -353 million ($34 million) in the previous quarter, and profit/loss before income taxes of NOK 442 million ($42.6 million) up from NOK -470 million ($45.3 million) in the previous 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 ($52 million) and EBITDA recognition of NOK 560 million ($54 million) in the quarter, which is also the main reason for the increase in operating income and operating earnings.

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 Euro 35-40 million, and the mill is expected to receive additional Euro 50 million in investment grants and energy certificates during 2026 and 2027.

Norske Skog is a leading producer of publication paper with strong market positions and customer relations in Europe.