Norske Skog Asa · OSL:NSKOG
Norske Skog Asa — Q1 2024 Earnings Presentation
13 slides from Norske Skog Asa's earnings presentation, Apr 19, 2024
Slide 1: Q1 2024 presentation – We create green value
Q1 2024 presentation 19 April 2024 We create green value
Slide 2: Norske Skog
Norske Skog Fibre processing industry Five high quality Strategic transition industrial sites Eleven paper machines with supporting Publication paper infrastructure for energy, fibre, and water Packaging paper Fibre projects Publication paper Capacity: 1 590kt Skogn Norway Packaging paper Oslo, HQ S
Slide 3: Quarter highlights
Quarter highlights First quarter 2024 Earnings negatively impacted by deconsolidation of Tasman and lower CO2 prices Quarterly EBITDA of NOK 76m impacted negatively by NOK 46m from Tasman deconsolidation Negative NOK 32m revaluation of surplus balance of CO2 allowances due to price decline Positive
Slide 4: Key figures
Key figures First quarter 2024 Deliveries volume Total operating income EBITDA Pre-tax profit Thousand tonnes NOKm NOKm (and margin) NOKm 400 4 000 3 763 800 760 800 3 404 675 586 350 29 3 500 3 320 700 38 600 26 3 036 300 64 71 3 000 600 70 74 2 688 400 52 250 27 2 500 500 52 27 39 200 60 112 200 2
Slide 5: Financial position
Financial position First quarter 2024 Equity ratio Interest coverage ratio Cash Net debt Book equity to total assets EBITDA to net cash interest cost NOKm NOKm (and leverage ratio) group covenant of min. 25% group covenant of min. 2.0x group covenant of min. NOK 100m unrestricted no group maintenanc
Slide 6: Segment financials
Segment financials Results driven by CO2 price and Tasman deconsolidation Q1 2024 NOK million Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Publication Paper Europe Publication Paper Europe EBITDA margin of 8% negatively impacted by NOK Deliveries, kt 245 267 258 270 262 32m from decline in CO2 prices Total operati
Slide 7: Containerboard ramp-up
Containerboard ramp-up Continued increase in delivery volumes Golbey PM1 Containerboard production start-up in H2 2024 Final piping and electrical work being completed and expect production commissioning start in Q3 2024 Remaining gross capex of NOK 1.0bn to be paid until Q3 2025, and NOK 0.6bn of e
Slide 8: Update on Saugbrugs
Update on Saugbrugs Ongoing process to determine future opportunities for Saugbrugs PM6 Insurance coverage Q1 2024 Business interruption insurance: No recognition in the quarter, but received cash payment of NOK 215m Property damage insurance: Recognised NOK 52m in other operating income and NOK 2m
Slide 9: Raw materials
Raw materials Spruce pulpwood prices at elevated levels and EUA price significantly down Energy prices Germany Recycled paper prices Germany Spruce pulpwood prices Norway CO2 (EUA) price EUR per MWh EUR per tonne NOK per solid cubic metre EUR per allowance 100 300 600 100 90 90 250 500 80 80 70 70 2
Slide 10: Publication paper market
Publication paper market Publication paper prices remain at low levels as demand stabilises Publication paper prices Germany Monthly publication paper demand and capacity Western Europe EUR per tonne Thousand tonnes 1 400 1 800 1 600 1 200 1 400 1 000 1 200 800 1 000 600 800 600 400 400 200 200 0 0
Slide 11: Packaging paper market
Packaging paper market Price increases implemented as demand growth returns Recycled containerboard index Germany Quarterly recycled containerboard demand and operating rate Western Europe Index Thousand tonnes Operating rate 1 000 8 000 100% 900 90% 7 000 800 80% 6 000 700 70% 5 000 600 60% 500 4 0
Slide 12: Outlook
Outlook Concluding remarks Energy costs stabilising, but pulpwood costs remain high and recycled paper availability is challenging Publication paper prices remain at low levels as industry continues to see low utilisation Price increases for containerboard implemented, but further increases are requ
Slide 13: We create green value
Norske Skog ASA Postal address: P.O. Box 294 Skøyen, 0213 Oslo, Norway Visitors: Sjølyst Plass 2, 0278 Oslo, Norway Phone: +47 22 51 20 20 Email: info@norskeskog.com Email: ir@norskeskog.com This presentation contains statements regarding the future in connection with Norske Skog’s growth initiative