Norske Skog sells excess power

Norske Skog sells back part of its energy contract to Statkraft. Norske Skog has reached an agreement to sell back excess power in southern Norway to Statkraft. The sale encompasses an annual volume of 680 gigawatt hours and covers the period through the end of 2020. The transaction will be closed by the end of February 2012.

The net proceeds and accounting effect will be published in connection with the presentation of Norske Skog's accounts for the first quarter 2012.

The background for the sale is the fact that Norske Skog after the closure of Norske Skog Follum has a contract for larger power volumes than needed by the group's plants. After the sale, the contract is aligned with the company's needs going forward.

"The power we now sell was originally acquired through a long-term, commercial contract in a market with lower power prices than today. When the situation is such that we no longer need as much power, it makes sense to sell it, in order to focus on running our manufacturing business," says Sven Ombudstvedt, President and CEO of Norske Skog.