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Git Navigation_Refactoring 2022-04-13_12:42

Seasonal effects

BillerudKorsnäs’ business is to a relatively limited extent subject to seasonal fluctuations. Periodical maintenance shutdowns have the largest impact, as each production unit stops production for around one week. The loss of production results in somewhat lower deliveries over an extended period before, during and after the shutdown.
BillerudKorsnäs’ costs are relatively stable throughout the year. Fixed costs are slightly lower in the summer, however, due to fewer maintenance projects and holidays. Energy costs are slightly higher in the winter because of higher energy consumption and normally higher energy prices, especially for electricity.

Maintenance shutdowns

In addition to ongoing maintenance during production, BillerudKorsnäs’ production units normally also require more extensive maintenance at some point during the year. In order to carry out maintenance, production of pulp and paper is stopped. The principal cost items in a maintenance shutdown are loss of volumes arising from the shutdown and fixed costs, mainly maintenance and overtime costs, as well as a certain portion of variable costs including higher consumption of electricity and wood when production is restarted. The effects of shutdowns on earnings vary depending on the extent of measures carried out, their nature and the actual length of the shutdown. The estimated cost of shutdown is an assessment of the impact on earnings of a normal shutdown, compared to a quarter during which no periodic maintenance shutdown takes place.

 

Maintenance shutdowns in Swedish and Finnish production facilities

Production unit Shutdown cost 2021 Estimated shutdown cost* Estimated breakdown of shutdown cost Planned dates of maintenance shutdown
  SEKm  SEKm Board


 Paper

2022|2021|2020
Gävle 179 ~165 ~94% ~6% Q3 | Q3 | Q3
Gruvön

204

~200 ~92% ~8% Q1-Q2 | Q2 | Q3
Frövi 119 ~115 100%   Q4 | Q4 | Q4
Skärblacka 164 ~130 ~12% ~88% Q2 | Q4 | Q4
Karlsborg 100 ~90   100% Q3 | Q3 | Q3
Pietarsaari - ~15   100% Q2 |  –  | Q4
Rockhammar 13 ~15 100%   Q4 | Q3 | Q4
Total 779 ~730