Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tasman Mill still not making money for Norway’s Norske Skog

Tasman Mill still not making money for Norway’s Norske Skog

By Pam Graham

July 10 (BusinessDesk) –Norway’s Norske Skog is making a loss on lower revenue from its New Zealand newsprint business after closing a paper machine at its Tasman Mill, and the large industrial user doesn’t like the cost of electricity here.

Norkse Skog Tasman reported revenue of $140.65 million in the year ended Dec. 31, 2013, down from $238.1 million in 2012, according to accounts filed to the Companies Office. The company made an operating loss before financing costs of $66.65 million in 2013, reduced from a loss of $349.26 million in 2012 when it booked a $221 million impairment charge on fixed assets.

Gross profit, which just takes into account cost of sales, was $61.62 million in 2013, down from $100 million in 2012. The bottom line loss of $83 million was reduced from a loss of $249.87 million in 2012.

The company closed a 50-year-old paper machine at its Tasman Mill at Kawerau on Jan. 9, 2013, removing160,000 tonnes of newsprint capacity from the Asian export market. The one remaining machine produces newsprint predominantly for the New Zealand and Australian markets.

The parent’s annual report in 2013 reveals the world’s second-largest newsprint maker had issues with the cost of electricity in New Zealand in that year. In March 2013 it decided to reduce production “due to the energy price development in New Zealand”, according to the annual report. The company also noted high electricity price in New Zealand in its first quarter accounts and is due to report second quarter accounts on July 17.

The Norske Skog Tasman accounts filed in New Zealand show most of a $17.75 million provision for restructuring was used in 2013 but $17.5 million of a $28.75 million provision for rehabilitation still had to be used. About 110 jobs went in Kawerau when the paper machine closed and the accounts show redundancy costs of $1.2 million in 2013.

Still, the news is not all bleak for the mill selling to the declining newsprint industry. The parent’s annual report notes Tasman’s work on making biofuel from sawdust with Z Energy as an example of creative ideas being pursued by the group.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news