A series of circumstances have delivered better results for Norske Skog as it battles to reduce losses and satisfy investors.
Gross operating earnings (EBITDA) in the fourth quarter of 2015 were NOK 260 million, up from NOK 163 million in the third quarter, resulting from higher sales and lower costs, while the release of working capital saw cash flow increase.
The exchange offer launched on January 5 has also been extended to February 26, following a court order granted to Citibank in New York.
President and chief executive Sven Ombudstvedt says the weakening of the Norwegian krone improved the operations for the Norwegian units but had a negative effect on net interest bearing debt.
In Australasia, operating revenue increased with a combination of "somewhat favourable pricing", sales volume and NOK depreciation, although variable costs increased with higher volumes and NOK depreciation.
A reversal of environmental provisions reduced fixed costs, but the effect of this was also reduced by NOK depreciation. "Gross operating earnings improved quarter-over-quarter with favourable capacity utilisation and the one-off cost reduction," Ombudstvedt says.
Demand for newsprint in Australasia decreased by about nine per cent in the first 11 months of the year compared to the same period last year, while demand for magazine paper was relatively stable.
Loss for the period was reduced to 304 million NOK, down from 742 million NOK in the previous period.
Ombudstvedt reported that the production of wood pellets in New Zealand by recently-acquired Nature's Flames had reached an annual capacity of 40,000 tonnes, with potential to expand the production, "given the considerable competitive export advantage.