A strong market and stable production improved the result
Q2 2021 compared with (Q2 2020)
SOLD VOLUME was 103,2 (93,1) thousand tons thanks to strong demand.
- PRODUCED VOLUME was at a high level, 109,2 (97,7) thousand tons. In 2020 a maintenance shutdown was held in May.
- NET TURNOVER increased by 16% to 593 (510) MSEK, driven by higher list prices and sales volumes.
- THE
LIST PRICE of NBSK pulp inEurope was 40% higher in USD and 22% higher in SEK compared with the second quarter of 2020. The list price has risen from880 USD to 1300 USD in the first half of 2021.
- EBIT (operating profit) for the second quarter of 2021 amounted to 97 (2) MSEK. A strong pulp market, low variable costs and high production and sales volumes were the main reasons for the improvement in profitability. Fixed costs also contributed positively.
- NET PROFIT for the second quarter of 2021 was 74 (-3) MSEK. Earnings per share for the quarter were 0,49
(-0,02) SEK .
- THE BALANCE SHEET remains strong. Available liquidity totalled 568 (519) MSEK and the equity/assets ratio was 57 (56)%.
- THE ANNUAL GENERAL MEETING was held on
April 28, 2021 . The Meeting resolved that no dividend be paid for 2020.
- THE CORONA PANDEMIC entails continued measures to minimise the risk of the spread of infection in the Group's facilities. Production was not affected by the pandemic during the quarter.
COMMENTS FROM THE CEO
Production, sales and financial results were all at a good level in the second quarter. Our clear focus on continuous improvement in the areas we can influence has paid off, despite the challenges posed by the pandemic. The recovery in the European pulp market continued during the quarter, while
We had a good quarter with stable production in our mills. The volume increased by 12 percent compared with the same quarter last year, to just over 109 000 tons. The comparison was influenced by the fact that the maintenance shutdown at
HIGHER VOLUMES, INCREASED PRICES AND GOOD ACCESS TO WOODS
Net turnover grew by 16 percent, with higher prices in SEK as well as increase in deliveries contributing. The price increase in USD was clearly higher than the weakening of the USD against the SEK. The strong market enabled us to gradually increase our prices during the quarter, which is normally done with some delay compared with list prices.
The EBIT improvement from 2 MSEK to 97 MSEK was mainly explained by increased volumes and prices. The availability of pulp wood continues to be good, which benefits our purchasing costs. The price of electricity remained unusually high for the season during the quarter. The price trend is concerning and a clear sign of the inadequate electricity supply we have in
CONTINUED SUCCESSFUL MANAGEMENT OF THE PANDEMIC
The safety and well-being of our employees always come first. We can still conclude that our systematic measures have kept the infection away from our facilities during the pandemic. Our efforts continued to minimise the psychosocial consequences that can arise when working from home. The fact that the pandemic has had no effect on production clearly demonstrates the successful efforts of our employees in dealing with the major challenges.
STRONG PRICE INCREASE BUT
The strong recovery in the pulp market, initially driven by strong demand in
STRONG CASH FLOW FACILITATES NEW, LESS EXPENSIVE FINANCING
In July, we redeemed our outstanding bonds of 400 MSEK ahead of schedule and partially replaced them with bank financing for a total of 250 MSEK, of which we are initially utilizing 150 MSEK. With our strong cash flow we can reduce our debt burden by approximately 250 MSEK while maintaining good liquidity. Consequently, we will reduce our financing costs by around 13 MSEK per year. The new financing also paves the way for a potential dividend to our shareholders in the second half of the year.
CONTINUED FOCUS ON THE ENVIRONMENT
At the beginning of April, the Board of Directors decided to invest 40 MSEK in the biomass boiler at
In conclusion, I would like to thank all employees for their great dedication and for the efforts that are constantly underway to strengthen and improve the
(For full report, see attached pdf)
This information is such information that
___________________________________________________________________________________________________________________________________________
Reminder;
Invitation to
All participants can follow the presentation via the web link 13.00 CET 22 July: https://www.finwire.tv/webcast/rottneros/q2-2021/
The presentation will be held in English. Questions can be asked in English or Swedish, via the link in advance or during the presentation.
You can also watch the presentation afterwards via
For further information please contact:
Lennart Eberleh, President and CEO,
+46 (0) 270 622 65, lennart.eberleh@rottneros.com
+46 (0) 270 622 70, monica.pasanen@rottneros.com
____________________________________________________________________________________________________________________
https://news.cision.com/rottneros-ab/r/rottneros-interim-report-january-june-2021,c3388068
https://mb.cision.com/Main/15260/3388068/1447270.pdf
https://mb.cision.com/Public/15260/3388068/9cb9d53d902cea92.pdf
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