Norske Skog's gross operating earnings (EBITDA) in the third quarter of 2013 were NOK 176 million, down from NOK 371 million in the third quarter of 2012. The decrease was due to divestments and lower margins. Cash flow from operating activities was NOK -91 million in the third quarter, and was weaker than the third quarter of 2012. The decrease was due to lower operating earnings and increased working capital.
- The total production capacity has been reduced in line with market demand. A better balance between supply and demand has given room for price increases in the second half of the year. This, combined with a favourable exchange rate development and stable raw material costs, contributes to a brighter margin outlook, says Ombudstvedt.
Net interest-bearing debt increased by NOK 277 million in the quarter, primarily due to the weaker Norwegian krone and negative cash flow. Net interest-bearing debt has increased by NOK 897 million so far this year, of which NOK 565 million is due to the weaker Norwegian krone. The company repaid the revolving credit facility of EUR 70 million in the quarter, thus removing uncertainty regarding possible covenant breaches. Financial items consist primarily of NOK 160 million in interest costs and NOK 87 million in unrealised currency losses.
