* Profit after net financial items amounted to SEK 69 million (103) for
the first quarter of 2016.
* Cash flow before investments totalled SEK 29 million (62). Rottneros
is debt-free and at the end of the quarter, cash and cash equivalents
totalled SEK 159 million (116).
* Net turnover for the first quarter was SEK 432 million (454).
* NBSK pulp price quotation continued to decline and was USD 792 on the
average during the first quarter. Denominated in SEK, the quotation
was 11 per cent lower than in the first quarter of 2015 and 4 per cent
lower than in the fourth quarter of 2015.
* Production volumes in the first quarter increased by 1 per cent and
delivery volumes by 2 per cent, compared with the same period last
year. Growth was limited to some degree by production disturbances at
Vallvik Mill.
* During the quarter, it was decided that a new energy- and
emission-efficient biomass boiler would be installed at Rottneros
Mill. Following the investment, energy consumption at both mills will
for all practical purposes be fossil-free.
* The Board of Directors has appointed Lennart Eberleh as new President
and CEO of Rottneros AB. He will take up his post on 1 September 2016.
* The Board of Directors has resolved to increase its proposed dividend
for 2015 and recommends that the Annual General Meeting approve an
ordinary dividend of SEK 0.30 per share and an extra dividend of SEK
0.20 per share, i.e. a total dividend of SEK 0.50 per share.
Comments by the President
A strong quarter despite lower prices
The Rottneros Group reports a strong first quarter. Corrective measures
within the scope of our development programme Agenda 500 continue to
bear fruit, in the form of increased efficiency and a steadily rising
pace of production. Both mills report good profitability. The impact of
the action programme is emphasised by the strong results for the
quarter, despite lower prices in both USD and SEK. The average of
published prices for NBSK pulp fell by 13 per cent in USD and 11 per
cent in SEK, compared with the first quarter last year.
Production volumes in the first quarter increased by 1 per cent compared
with the same period in 2015. Growth was limited to some degree by
production disturbances at Vallvik. However, production there improved
gradually during the quarter and a new monthly record was set after the
quarter in April.
Our market remains stable and prices for long-fibre sulphate pulp are
showing signs of an upturn since the end of the quarter. Several major
players have announced price rises. With our plans both to expand in
selected niches and to further improve efficiency we have a strong
position from which to move forward.
High investment activity
The current year is dominated by an intensive focus on investments
within the Agenda 500 programme. In all, the Group is investing more
than SEK 250 million over the year, in capacity expansion, energy
efficiency, product quality and environmental improvements. The
investments are highly value-creating and the investment amount is
relatively evenly spread between the two mills. Installations under
these investments will for the most part take place during the autumn
maintenance shutdowns.
The Board has also allocated SEK 98 million to Rottneros Mill for a new
biomass boiler, which is due to be commissioned at around mid-year 2017.
Energy consumption at the mill will become entirely fossil-free and at
the same time energy efficiency will increase substantially. As part of
the investment we will also remodel the mill’s energy system to bring
about major energy and environmental gains. Overall, it is estimated
that this highly value-creating investment will result in annual savings
of around SEK 25 million.
Solid balance sheet creating sound platform for extra dividend
The Group’s solid finances and the Board’s objective of improving the
Company’s capital structure are the basis on which the Board recently
revised its dividend proposal. Under the proposal, the Company will pay
an extra dividend of SEK 0.20 per share for 2015, in addition to an
ordinary dividend of SEK 0.30. At year-end, the Company was debt-free,
had a substantial liquidity reserve and reported an equity/assets ratio
of 76 per cent. As a result of the proposed extra dividend, Rottneros’
capital structure will be improved.
New President and CEO Another important event during the quarter was the
appointment of Lennart Eberleh as new President and CEO. He has more
than 20 years’ experience of a variety of management positions in the
paper industry, and will continue the work of implementing the Agenda
500 programme and further advancing Rottneros’ world-leading position in
specialised pulp. He will take up his post on 1 September 2016.
Per Lundeen
(For the complete interim report see attached file)
For more information, please visit. www.rottneros.com
Vallvik, 16 May 2016
Per Lundeen
Chief Executive Officer and President
Rottneros discloses the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act.
This information was submitted for publication on 16 May 2016 at 8.00
am. A Swedish and an English version of this report have been drawn up.
The Swedish version shall prevail in the event of differences between
the two reports.
