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Third party research

Rottneros: Weak ending, but pulp is moving up - ABG

Rottneros

This is a third party research report and does not necessarily reflect our views or values

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Q4 below, Q1 likely better
Pulp prices rising amid price hikes
Fair value range: SEK 9-16/sh


Q4 below, Q1 likely better

EBIT was SEK -28m, which compares to our estimate of SEK -25m. The small miss was mainly driven by lower sales volumes. Note that Rottneros sold emission rights totalling SEK 76m and they had an impairment of SEK 13m at the Rottneros mill, i.e. clean EBIT was SEK -104m vs. our SEK -90m. Q1 clean EBIT (excl. SEK 76m from emission rights) should see SEK +100m in less maintenance costs, and SEK +20m in higher volumes and prices. This points to Q1 clean EBIT of SEK 5-20m.
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