Feb. 8 (Bloomberg) -- Norske Skogindustrier ASA rose the most in almost a month in Oslo trading after the Norwegian paper maker saw its cash flow surge almost fourfold, helping the company reduce its debts.
“The most important thing is the cash flow,” Thomas Nielsen, an analyst with Pareto Securities ASA, said by the phone. “They had a good result.”
Norske Skog jumped 14 percent, the biggest gain since Jan. 13, and traded 10 percent higher at 7.55 kroner as of 12:22 p.m. in Oslo. The stock is up 67 percent this year.
The company reported a cash flow of 409 million kroner ($71 million) in the quarter as gross operating earnings rose 5 percent to 503 million kroner. Debt fell 3 percent in the quarter to 7.86 billion kroner. Svenska Handelsbanken AB had identified debt reduction as a key driver behind Norske Skog’s share gains.
“The improvement was driven by higher newsprint prices in Europe and a lower level of fixed costs,” the Lysaker-based company said in a statement today. “Variable costs, adjusted for the lower sales volumes, were on the same level in the two quarters.”
Norske Skog’s shares gained even after the company had a net loss of 592 million kroner in the period, versus the 118 million-krone average loss seen in a Bloomberg survey of analysts.
--Editors: Jonas Bergman, Tasneem Brogger.
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