Norske Skog's EBITDA soars to NOK 335 million

Norske Skog's gross operating earnings (EBITDA) in the 2Q 2016 was NOK 335 million ($40 million), which was a significant increase from NOK 242 million ($28.8 million) in the 1Q and a significant improvement of NOK 138 million ($16.4 million) 2Q 2015.

Gross operating earnings (EBITDA) for the first six months totaled NOK 577 million ($68.7 million). Norske Skog had guided for a gross operating earnings in the first half above NOK 500 million ($59.5 million).

“As announced in the 1Q, the European market shows signs of clear improvements. We are now seeing the effects of own cost reductions and capacity closures in Europe and North America in recent years. Our mills have been operating close to full capacity utilization throughout the first half. The need for active capacity management will be less in the second half than in the corresponding period previous year. Seasonal variations are in 2016 expected to provide higher sales volumes in the second half than in the first. The improvement market balance will be supportive to maintain margins at the same level as in the first half,” says Sven Ombudstvedt, CEO of Norske Skog.

Norske Skog is a Norwegian pulp and paper company. The corporation is the world's largest producer of newsprint and magazine paper.