High prices gave very strong earnings
- NET TURNOVER increased by 22 percent to 660 (542) MSEK, driven by higher selling prices.
- THE
LIST PRICE of NBSK pulp inEurope was 35 percent higher in USD and 50 percent higher in SEK compared with the first quarter of 2021. The list price has risen from958 USD in Q1 2021 to 1291 USD in Q1 2022. - VOLUME PRODUCED amounted to 103,2 (102,5) thousand tonnes, affected by winter problems and limited production due to high electricity prices.
- SOLD VOLUME amounted to 100,0 (112,0) thousand tonnes. Demand remained strong in
Europe , but sales were held back by low opening stocks. - EBIT (operating profit) for the first quarter of 2022 was 145 (11) MSEK. A strong pulp market was the main reason for the improvement in earnings. Profit was held back by rising variable costs.
- NET PROFIT for the first quarter of 2022 was 114 (5) MSEK. Earnings per share for the quarter were 0,75
(0,03) SEK . - THE BALANCE SHEET has been further strengthened. The equity/assets ratio was 67 (57) percent and available liquidity totalled 416 (513) MSEK. Net debt was 2 MSEK.
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COMMENTS FROM THE CEO
The pulp market continues to be strong, providing us with ultra-strong quarterly earnings. At the same time, variable costs are rising as a result of the imbalances created by
Net turnover grew by 22 percent and EBIT improved by 134 MSEK to 145 MSEK. The rise in pulp prices and the weaker SEK were the main explanations. Production increased by 1 percent, while deliveries decreased by 11 percent. Cash flow from operating activities amounted to -1 MSEK and was negatively affected by increases in working capital.
THE INVASION OF
We strongly condemn
Sales to
RISING INPUT SUPPLIES REQUIRE COST EFFICIENCY
It is clear that we have now entered a period of higher inflation on our input goods and thus higher variable costs. In particular, we have been in a favourable position for our raw material flows for a couple of years, but the external situation is now gradually leading to a tighter pulp wood market.
The electricity market continues to be a problem for the electricity-intensive production of
In view of the changing energy market situation and rising prices for other input goods, the Board has initiated an in-depth strategic analysis to ensure that the Group's structure meets the requirements of sustainable profitability in line with our financial targets. Basically, we must always have an optimal structure to create long-term value with high cost-effectiveness.
ROBUST PULP MARKET, PRICES REBOUNDED DURING THE QUARTER
The pulp market continues to be strong and the list price of NBSK rose during the quarter. It returned to the historic high of 1
PACKAGING INITIATIVE IN
In February, the Boards of
Finally, I would like to thank all my colleagues for their great commitment to constantly developing and improving
(For full report, see attached pdf)
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This information is such information that
Lennart Eberleh, president and CEO
+46 (0)270 622 65
lennart.eberleh@rottneros.com
https://news.cision.com/rottneros-ab/r/rottneros-interim-report-january-march-2022,c3555033
https://mb.cision.com/Main/15260/3555033/1570464.pdf
https://mb.cision.com/Public/15260/3555033/b64ee0b39007212c.pdf
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