Rottneros Q3 EBITDA turns positive on lower pulpwood prices

Independent market pulp producer Rottneros posted third-quarter EBITDA of SEK 26 million, compared with a loss of SEK 21 million a year earlier, as lower variable costs improved earnings, the company said. Net turnover fell 1% to SEK 570 million, while delivery volumes increased 2% and sales prices were slightly lower.

“Despite the turbulent environment, the business continued to develop in the right direction in the third quarter. Production was stable and demand in our niches remained good, while lower costs were a key factor in the earnings improvement compared with last year,” the company said.

Variable costs fell by SEK 51 million, mainly because of a lower pulpwood price. An increased supply of wood combined with lower demand resulted in favorable pulpwood price development, although there were indications that the decline was leveling off. The sale of emission allowances added SEK 8 million to earnings.

The pulp market was characterized by overcapacity despite capacity adjustments. Demand remained good in the company’s niches, and the business climate for unbleached chemical pulp remained favorable partly because of high demand in niche electrotechnical applications. Growing market pulp supply from China contributed to competition in Europe.

Production totaled 79,300 metric tons, up 9% from 72,900 metric tons in the third quarter of 2025. Vallvik Mill produced 58,100 metric tons, 1% more than a year earlier. Rottneros Mill produced 21,200 metric tons of CTMP, compared with 15,400 metric tons. CTMP production was adjusted to market demand, electricity price fluctuations and profitability.

Sold volume reached 77,500 metric tons, compared with 76,300 metric tons a year earlier. The increase came from CTMP, while the total supply volume of sulphate pulp was lower. The NBSK price in Swedish kronor was 1% lower than a year earlier, while the CTMP price was 5% higher. Compared with the second quarter of 2026, NBSK was up 1% and CTMP was up 4%. The average exchange rate was 9.65 SEK/USD, 1% higher than a year earlier and 3% above the second-quarter level in 2026.

Vallvik Mill began its annual maintenance shutdown at the end of September. The work was mainly carried out in October, and the mill produced at full scale in the middle of October. The summer maintenance shutdown at Rottneros Mill was completed as planned.

Investments for the first nine months were SEK 23 million, down from SEK 102 million a year earlier. Full-year investments are expected to total about SEK 60 million, compared with SEK 166 million in 2025. Cash flow from operating activities for January through September was negative SEK 94 million, compared with negative SEK 70 million a year earlier.

Net income improved to a loss of SEK 15 million from a loss of SEK 52 million. The equity/assets ratio was 61%, compared with 63% a year earlier and a long-term target of at least 50%. Available liquidity was SEK 129 million, down from SEK 406 million, while net debt was SEK 456 million, compared with SEK 273 million a year earlier. Loan repayments totaled SEK 17 million, and the Group had about 253 employees.