Q2 2024 Rottneros AB Earnings Call Transcript
Key Points
- Rottneros AB (OSTO:RROS) achieved a new production record for mechanical pulp in Q2 2024.
- The company reported a 4% increase in turnover, ending the quarter with an EBIT of SEK30 million.
- Strong market conditions in Europe and the US contributed to rising prices for softwood kraft pulp.
- Rottneros AB (OSTO:RROS) has secured long-term financing for its solar panels and battery investments, supported by a green credit guarantee.
- The company is focusing on niche markets, such as fiber cement and molded fiber trays, which are seeing increased demand.
- Rottneros AB (OSTO:RROS) experienced a decrease in EBIT from SEK41 million in Q2 2023 to SEK30 million in Q2 2024.
- The company faced production issues in the first quarter, impacting sales of NBSK and UKP pulp.
- Pulpwood prices are at record highs, affecting profitability.
- The company has moved some maintenance CapEx forward due to a rocky start to the year, increasing total CapEx to SEK430 million.
- Rottneros AB (OSTO:RROS) has transitioned from a net cash position to a net debt position due to ongoing investments.
Hello, everyone, and welcome to this webcast presentation where we have Rottneros present their Q2 report for 2024. With us presenting we have the CEO, Lennart Eberleh; and CFO, Monica Pasanen.
After the presentation, there will be a Q&A. (Operator Instructions)
And with that said, please go ahead with your presentation.
Thank you, Martin, and hello, everybody, to our second-quarter report of 2024. If we look at the highlighted summary here, we have focused very hard to stabilize our operations off to the slightly bumpy start into this year. And we've seen good delivery figures. We've seen new production record during the second quarter for mechanical pulp, but also Vallvik has had solid production numbers.
We have been able to capitalize on our excellent customer relations. Especially in Europe, we've seen a strong pulp market with rising prices for softwood kraft as well as in the US where some volumes from us are going. So all in all, the increase turnover has
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