Norske Skog delivered a profit before income taxes of NOK 236 million and an
EBITDA of NOK 451 million in the first quarter of 2026. Recycled containerboard
deliveries reached a record 106 thousand tonnes in the quarter. Improved
profitability, strong operational execution and continued progress in strategic
projects characterised the quarter. Significant liquidity inflows after the end
of the quarter further strengthened the financial position.

"We achieved record containerboard deliveries and significantly improved
profitability in the first quarter," says Geir Drangsland, CEO of Norske Skog.
"Operational performance continues to improve across our packaging paper
business, while publication paper profitability benefited from lower raw
material costs and the recognised gain related to the Saugbrugs transaction. We
are also seeing clear effects from our ongoing cost and working capital
initiatives. Cash generation was strong, working capital remained efficient, and
significant liquidity inflows after quarter-end further strengthened our balance
sheet.

In the first quarter of 2026, total operating income increased to NOK 2 877
million, up from NOK 2 589 million in the previous quarter. Norske Skog reported
total operating earnings of NOK 407 million and a profit before income taxes of
NOK 236 million, compared with a loss before income taxes of NOK 256 million in
the fourth quarter of 2025. Equity increased from NOK 5 819 million to NOK 5 927
million, increasing the equity ratio from 39.6% to 41.7% in the quarter. Total
assets decreased from NOK 14 707 million to NOK 14 221 million, whereof cash and
cash equivalents decreased from NOK 1 082 million to NOK 653 million. Net
interest-bearing debt increased from NOK 4 295 million to NOK 4 502 million. 

Subsequent to the quarter, Norske Skog received approximately NOK 370 million in
energy refunds in April and expects additional energy refunds of approximately
EUR 10 million during the second quarter of 2026. The company also expects NOK
770 million in net proceeds in the second quarter of 2026 from the transaction
with NND (Norwegian Nuclear Decommissioning) related to the Saugbrugs site, of
which approximately NOK 50 million will be used for dismantling costs.


Market segments
Norske Skog's publication paper segment experienced seasonally lower deliveries
and a strengthened NOK, resulting in reduced operating revenue in the quarter.
However, profitability improved due to lower costs of materials, reflecting
reduced pulpwood prices, reduced manning, higher market shares in all
publication paper segments, and the recognition of a NOK 320 million gain from
the transaction with NND at Saugbrugs. Further raw material price reductions are
expected through 2026. Further capacity closures are required across all
publication paper grades to maintain market balance.

The packaging paper segment delivered strong operational progress with record
recycled containerboard deliveries of 106 thousand tonnes in the quarter.
Improved operating efficiency, stable prices and a higher share of European
deliveries supported profitability. Bruck PM3 delivered a positive EBITDA of NOK
15 million, while losses at Golbey PM1 were significantly reduced to an EBITDA
of NOK -43 million, compared with NOK -124 million in the previous quarter. Full
utilisation at Golbey PM1 remains targeted for the first half of 2027.


Projects and other initiatives
Norske Skog Skogn expects to complete the book paper project at PM1 in April
2026, enabling delivery of market standard book paper under the NOR Book brand
with an annual capacity of up to 140 000 tonnes. The net investment amounts to
approximately NOK 40 million, with customer qualification and trial deliveries
planned during the second quarter of 2026.

At Skogn, Norske Skog continues to advance the PulpFlex project, which aims to
reduce energy consumption, improve fibre quality and enhance power grid
flexibility. The first stage of the project is expected to be completed during
2026.

Norske Skog continues to evaluate strategic options for Saugbrugs following the
property transaction with NND. Studies related to alternative industrial
activities, including a potential data centre collaboration and a possible
rebuild of PM6 for a switch between SC magazine paper and TMP-based kraftliner,
a packaging paper product, are expected to conclude during the second quarter of
2026.

Norske Skog is reviewing an expansion of its Golbey biogas project to increase
green biogas deliveries to the national grid from 16 GWh to 70-90 GWh annually,
with potential additional revenues of around EUR 8 million and commissioning
targeted for 2028.

Norske Skog is reviewing a Battery Energy Storage System at Bruck to reduce
electricity costs and provide grid services, with a planned 20 MW battery
expected to generate annual profits of EUR 2-3 million and start operations in
2027.

The appeal regarding the decision to exclude Norske Skog Skogn and Norske Skog
Saugbrugs from the EU Emissions Trading System (EU ETS) for the period 2026 to
2030 is currently being handled by the Ministry of Climate and Environment. The
exclusion is based on revised qualification criteria under which facilities with
more than 95% of emissions originating from sustainable biomass no longer
qualify for free CO2 allowances. Norske Skog is actively engaging with the
authorities to seek a reversal of this decision.


Outlook
Norske Skog aims to continue increasing market share despite an uncertain
operating environment and challenging markets. The company expects continued
volatility in raw material prices, excess production capacity, and frequently
changing operating conditions. To remain competitive, Norske Skog places strong
emphasis on reducing production costs and working capital. Published price
increases for publication paper are expected to strengthen profitability going
forward. At the same time, higher energy prices will affect many players in the
industry, while Norske Skog is expected to be less impacted due to its high
share of biomass-based energy.

Norske Skog will continue to progress with development projects across all of
its mills, including the book paper project and PulpFlex project at Norske Skog
Skogn, the data centre project and rebuild of paper machine 6 to TMP-based
kraftliner project at Norske Skog Saugbrugs, the battery energy storage system
project at Norske Skog Bruck, and the biogas project at Norske Skog Golbey.
Norske Skog monitors the capital and liquidity position closely and has several
ongoing initiatives to secure the financial performance and competitive position
going forward. 


About Norske Skog

Norske Skog is a producer of packaging paper and publication paper across four
mills in Europe. Packaging paper includes testliner and fluting and publication
paper includes newsprint and magazine paper. The annual production capacity of
packaging paper is 0.8 million tonnes, and the annual production capacity of
publication paper is 1.2 million tonnes. Packaging paper and publication paper
are sold through sales offices and agents. Norske Skog has approximately 1 650
employees and the parent company, Norske Skog ASA, a public limited liability
company, is incorporated in Norway and has its head office in Oslo. The company
is listed on Oslo Stock Exchange with the ticker NSKOG.

Presentation and quarterly material
The company will arrange a Teams-webinar today at 08:30 CET, which can be
attended by clicking the webinar link on the front page of the
www.norskeskog.com.

The quarterly board of directors report, the presentation, the financial
statements and the press releases are available on www.norskeskog.com,  and
published on www.newsweb.no under the ticker NSKOG. If you want to receive
future Norske Skog press releases, please subscribe through the website of the
Oslo Stock Exchange www.newsweb.no. 
 

Norske Skog
Communications and Public Affairs

Norske Skog media:
Vice President Corporate Communication and Public Affairs
Carsten Dybevig
[email protected]
Mob: +47 917 63 117

Norske Skog Investor Relations:
Senior Vice President Corporate Finance
Even Lund
[email protected]
Mob: +47 906 12 919