Rottneros: Pulp markets are improving - ABG

Q3: Large volume-driven beat
Pulp prices on the rise
Fair value range: SEK 9-16/sh


Q3: Figures well above expectations

Q3 clean EBIT of SEK 49m was well above ABGSCe of SEK -28m. The beat was driven by 27% higher volumes, and lower costs. Pulp prices have troughed, and they are on the rise (especially CTMP prices). We believe higher pulp prices will add ~SEK 30m q-o-q in Q4. More maintenance and seasonally higher personnel costs will more than offset the positive effects. Our q-o-q bridge points towards clean EBIT of SEK -20-35m in Q4. Pulpwood prices are still on the rise in Sweden, but Rottneros will reduce Baltic sourcing on a better Swedish market balance, which will offset some of the negative effect.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/rottneros/Equity-research/2023/10/rottneros---pulp-markets-are-improving/