Norske Skog posts strong Q1 results with US$59M EBITDA, driven by insurance payout

NORWAY – Norske Skog has reported a significant improvement in its first-quarter financial results for 2025, with EBITDA surging to NOK 612 million (US$59m), up from NOK 33 million (US$3.2m) in Q4 2024.

The dramatic increase is largely attributed to a final insurance settlement of NOK 560 million (US$54 million) related to the April 2023 rockslide at the company’s Saugbrugs mill in Norway.

The company also saw total operating income rise to NOK 3.101 billion (US$299.16m) in Q1, up from NOK 2.67 billion (US$257.20m) in the previous quarter.

Operating earnings jumped to NOK 489 million (US$47.2 million), reversing a loss of NOK 353 million (US$34.05m) in Q4 2024.

 Profit before income taxes also rebounded strongly, reaching NOK 442 million (US$42.6 million) compared to a loss of NOK 470 million (US$45.3 million) in the prior quarter.

Despite ongoing pressure on industry utilization rates and profitability, Norske Skog continued to grow its market share in both publication and packaging paper segments during the quarter.

Strategic shift toward packaging paper

A key highlight for the group is the imminent start of containerboard production at its Golbey mill in France.

The €320 million (US$364.08m) investment represents a major step in Norske Skog’s strategic transformation from a traditional publication paper producer to a diversified packaging paper supplier.

“Containerboard production at Norske Skog Golbey will start in about one week, marking the completion of a significant investment project for the group,” said Geir Drangsland, CEO of Norske Skog. 

“With this large and modern production line, fully based on recycled fibre, we will increase our total delivery capacity by more than 35% and vastly enhance our ability to serve the growing demand for containerboard.”

The Golbey facility, once fully operational, will significantly bolster Norske Skog’s packaging paper capabilities, aligning with global trends toward sustainable and recycled packaging solutions.

Looking ahead, the company acknowledges continued uncertainty and profitability pressures in both the publication and packaging paper markets.

These are driven by raw material price volatility, surplus production capacity, and rapidly shifting operational conditions.

In response, Norske Skog is intensifying efforts to cut production costs and reduce working capital to maintain competitiveness.

The company is also ramping up recycled containerboard production at its Bruck mill in Austria, aiming for full utilisation by the second half of 2025.

Golbey’s new PM1 line is expected to reach full capacity by the first half of 2027. Remaining gross investments at Golbey are estimated at €35–40 million (US$39.82m – US$45.51m), with additional €50 million (US$56.89m) in investment grants and energy certificates anticipated between 2026 and 2027.

Norske Skog remains a leading publication paper producer with a solid foothold in Europe and strong customer relationships, now reinforced by its growing presence in the packaging segment.

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