Portugal's Navigator says profit jumps 60%, outlook positive
28/10/2021 18:07
By Sergio Goncalves
LISBON, Oct 28 (Reuters) - Portugal’s pulp and paper
producer Navigator NVGR.LS reported on Tuesday a 60% jump in
third-quarter net profit and said the reopening of the global
economy amid accelerating vaccination against COVID-19 made for
a positive business outlook.
Navigator, which sells more than 80% of its output abroad in
as many as 130 countries, netted 49.8 million euros ($58
million) in the period.
Total sales grew over 16% from a year ago to 404.9 million
euros, and rose over 8% form the preceding quarter thanks to
higher paper volumes sold and rising pulp prices, the company
said.
"In the paper business, the expected economic upturn,
combined with an improvement in the balance between supply and
demand in the United States and Europe... allow for good
prospects for the end of 2021," it said in a statement.
In the pulp market, cooling demand in China and increasing
supply is causing prices to fall in China, a trend it said "may
continue, but at a significantly lower pace, during the fourth
quarter."
But it added that in Europe "prices should remain supported
by the post-pandemic economic recovery, the good level of demand
and the logistical difficulties in exporting from Latin America
to Europe".
Navigator's EBITDA - earnings before interest, taxes,
depreciation and amortisation - rose almost 36% in the quarter
from a year ago to hit 95.5 million euros.
($1 = 0.8561 euros)
(Reporting by Sergio Goncalves; editing by Andrei Khalip)
((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))