Corrects EBIT in Key Details table to NOK 2.88 bln, from NOK 407 mln
Overview
Norway packaging and publication paper maker's Q1 operating income rose quarter-on-quarter
Q1 EBITDA increased to NOK 451 mln, with record recycled containerboard deliveries
Publication paper profitability improved due to lower raw material costs and Saugbrugs transaction gain
Outlook
Norske Skog expects continued volatility in raw material prices and challenging market conditions
Published price increases for publication paper are expected to strengthen profitability going forward
Company says higher energy prices will affect the industry, but expects to be less impacted
Result Drivers
RECORD CONTAINERBOARD DELIVERIES - Record recycled containerboard deliveries of 106,000 tonnes supported profitability in the packaging paper segment
LOWER RAW MATERIAL COSTS - Publication paper profitability improved due to lower pulpwood prices and reduced manning
SAUGBRUGS TRANSACTION GAIN - Publication paper segment recognized a NOK 320 mln gain from the Saugbrugs transaction
Company press release: ID:nObiPl6Lma
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EBITDA
Beat
NOK 451 mln
NOK 389.50 mln (2 Analysts)
Q1 EBIT
NOK 407 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the paper products peer group is "buy"
Wall Street's median 12-month price target for Norske Skog ASA is NOK23.00, about 40.9% below its April 23 closing price of NOK38.90
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)