Q4 2024 Rottneros AB Earnings Call Transcript
Key Points
- Rottneros AB (LTS:0H0L) reported an underlying improvement in EBIT, despite maintenance shutdowns affecting results.
- The company successfully completed a significant investment program, including a new tall oil plant, expanded CTMP capacity, and solar panels, totaling SEK450 million.
- Rottneros AB (LTS:0H0L) benefited from higher sales prices and a favorable USD to SEK exchange rate, positively impacting revenue.
- The company has diversified its sales strategy, increasing exposure to stable segments like tissue and electrotechnical specialties.
- Rottneros AB (LTS:0H0L) maintains a strong balance sheet with an equity to assets ratio of 59% and available liquidity of SEK385 million.
- Rottneros AB (LTS:0H0L) faced high raw material costs, particularly for pulpwood and formal chips, impacting profitability.
- The company decided not to pay a dividend for 2024 due to weak results and an uncertain macroeconomic environment.
- The pulp market experienced a slowdown in the fourth quarter, with prices peaking and then declining.
- Rottneros AB (LTS:0H0L) experienced weak deliveries in Q4, partly due to maintenance shutdowns and lower demand in the CTMP market.
- Rising wood costs are expected to increase working capital needs, potentially affecting future financial flexibility.
Hello and welcome to today's virtual presentation where we have Rottneros with CEO, Lennart Eberleh; and CFO, Monica Pasanen. we will present the Q4 report for 2024.
(Operator Instructions) And with that said, please go ahead with your presentation.
Thank you, Martin and hello everybody to this report call, happy to have you with us and we'll start off with the highlights for the fourth quarter.
And the underlying EBIT has improved, eliminating one off items to minus 28. Please bear in mind that we had two maintenance stops in the fourth quarter. Usually, we only have the bigger mill Vallvik in the fourth quarter and Rottneros Mill in the third. Well, last year, both were the same quarter.
We had a one-off impact of sales of emissions rights of seventy-six in the quarter and also refinanced our long-term loans prior to year end for the full year. We had an EBIT of SEK47 million primarily impacted by the high raw material cost where we've seen a continued increase or
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