Norske Skog Asa · OSL:NSKOG
Norske Skog Asa — Q3 2024 Earnings Presentation
13 slides from Norske Skog Asa's earnings presentation, Oct 18, 2024
Slide 1: Q3 2024 presentation: We create green value
Q3 2024 presentation 18 October 2024 We create green value
Slide 2: Norske Skog
Norske Skog Sustainable fibre processing Five high quality Deliveries volume rolling last-twelve-months industrial sites Thousand tonnes Eleven paper machines with supporting infrastructure for energy, fibre, and water 1 600 1 400 102 134 150 Growing packaging paper producer 65 1 200 231 299 RCCM ca
Slide 3: Quarter highlights
Quarter highlights Third quarter 2024 Maintaining positive EBITDA and good cash position in challenging markets Quarterly EBITDA of NOK 91m with continued growth in EBITDA contributed from the Packaging Paper segment Signing a NOK 500m green term loan agreement at Skogn to enhance cash position Capa
Slide 4: Key figures
Key figures Third quarter 2024 Deliveries volume Total operating income EBITDA Pre-tax profit Thousand tonnes NOKm NOKm (and margin) NOKm 450 4 000 3 763 800 760 800 400 3 500 700 586 3 217 600 41 42 3 036 3 006 350 29 26 38 3 000 600 2 688 400 77 311 300 71 77 70 74 2 500 500 471 250 27 200 41 50 1
Slide 5: Financial position
Financial position Third quarter 2024 Equity ratio Interest coverage ratio Cash1 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 maintenan
Slide 6: Segment financials
Segment financials Maintaining positive EBITDA in challenging markets NOK million Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Publication Paper Europe Deliveries, kt 258 270 262 279 283 Total operating inc. 2 405 3 028 2 058 2 514 2 224 Q3 2024 EBITDA 335 723 166 464 99 Publication Paper Europe Increased deliveri
Slide 7: Raw materials
Raw materials Fibre prices remain at high levels 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 100 350 700 100 90 90 300 600 80 80 70 250 500 70 60 60 200 400 50 50 150 300 40 40
Slide 8: Publication paper market
Publication paper market Publication paper prices at low levels with stable demand development 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
Slide 9: Packaging paper market
Packaging paper market Containerboard price following recovered paper prices 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
Slide 10: Containerboard ramp-up
Containerboard ramp-up Continued increase in production volume Monthly RCCM production Bruck PM3 Monthly RCCM production cost index Bruck PM3 Thousand tonnes Indexed to 100 per June 2023 Golbey PM1 – 550kt containerboard capacity 18 120 Cabling representing majority of remaining work Full utilisatio
Slide 11: Saugbrugs BCTMP design phase
Saugbrugs BCTMP design phase Strong local support to secure Saugbrugs as cornerstone industry in Halden BCTMP project updates Project organisation established Engaged technical and environmental consultants Working with multiple machinery and equipment suppliers Meetings with Norwegian Environment A
Slide 12: Outlook
Outlook Concluding remarks Energy costs normalising, but pulpwood and recovered paper costs increasing Publication paper prices remain at unsustainable levels as fibre costs increase Recovered paper remains a significant cost for the production of containerboard Expect positive EBITDA from packaging
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