Norske Skog: demand drop due to corona pandemic

Norske Skog’s EBITDA in 2Q 2020 was NOK 138 million ($14.9 million), a decrease from NOK 379 ($41 million) in 1Q 2020, mainly due to national restrictions on movement of goods and people following the outbreak of the corona pandemic. The restrictions had severe negative impact on operations due to a sudden and considerable drop in demand for publication paper.

Operating earnings in 2Q 2020 were NOK -122 million (-$13.2 million) compared to operating earnings of NOK 90 million ($9.7 million) in 1Q 2020 impacted by impairment recognized in the quarter. Net loss in the quarter was NOK 59 million ($6.4 million) compared to a net loss of NOK 374 million ($40.5 million) in the previous quarter. The previous quarter was impacted by unrealised currency loss that was only partially reversed in the second quarter as NOK was stronger at the quarter end.

Cash flow from operations was NOK -109 million in the quarter compared to NOK 470 million ($50.9 million) in the previous quarter. 1Q was to a large degree positively impacted by CO2-compensation, the sale of CO2-allowances and currency gain from the completion of the Albury sale. 2Q was negatively impacted by payment of income taxes mainly at Golbey. Net interest-bearing debt was NOK 329 million ($35.6 million) at the end of 2Q, with an equity ratio of 52%.