HELSINKI (dpa-AFX) - Shares of Stora Enso Oyj (SEOAY.PK) were gaining around 7 percent in the morning trading in Helsinki after the Finnish paper mill company reported Wednesday a profit in its fourth quarter, compared to prior year's loss, despite weak sales.
In the fourth quarter, net profit on IFRS basis was 363 million euros, compared to prior year's loss of 379 million euros.
Earnings per share were 0.46 euro, compared to loss of 0.43 euro last year. Excluding fair valuations, the company reported loss of 0.03 per share, compared to loss of 0.81 euro last year.
Adjusted EBIT, meanwhile, decreased 17 percent year-over-year to 100 million euros, driven by lower pulp prices and adverse currency effects, as well as the ramp-up of the new line in Oulu, which impacted the result negatively. The adjusted EBIT margin decreased to 4.5 percent from 5.2 percent last year.
Adjusted EBITDA fell 10.7 percent from last year to 255 million euros.
Sales fell 2.9 percent to 2.254 billion euros from 2.322 billion euros a year earlier, mainly due to lower board and pulp prices, partly offset by the impact from acquisition of Junnikkala and the consumer board line ramp-up at the Oulu site.
Further, the Board of Directors will propose a dividend of 0.25 euro per share, same as last year, at the Annual General Meeting on March 24. The dividend will be paid in two instalments, during the second and fourth quarter of 2026.
Stora Enso added that it is preparing for the separation of its Swedish forest assets business into a new publicly listed company, expected to be completed during the first half of 2027.
The company also initiated a strategic review of its Central European sawmills and building solutions operations.
Looking ahead for the first quarter, the company expect a negative impact from ramp-up of the new production line in Oulu of 15 million euros to 30 million euros on adjusted EBIT.
Markets remain challenging, with low consumer confidence, and packaging and pulp market demand is expected to remain stable at low levels.
The company said it will continue with the ramp-up of the consumer board line at the Oulu site in Finland. The line is expected to reach full capacity during 2027.
In Helsinki, Stora Enso shares were trading at 10.53 euros, up 7 percent.
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