Billerud’s 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.
Billerud’s 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.
In addition to ongoing maintenance during production, Billerud’s production units normally also require more extensive maintenance at some point during the year. Maintenance requires the production of pulp, paper and board to stop. The main financial impact from a maintenance shutdown comprises of volume losses arising from the shutdown and fixed costs, mainly for maintenance and overtime, as well as a certain portion of variable costs for higher consumption of electricity and wood when production is restarted. The estimated earnings impact of a maintenance shutdown is an indicative impact of a normal shutdown performed in average market conditions compared with a quarter during which no periodic maintenance shutdown takes place. During 2022, the Quinnesec production unit will carry out a more extensive shutdown.
Estimated average earnings impact from maintenance shutdowns
|Production units||Estimated average earnings impact||Estimated breakdown of earnings impact||Planned dates of maintenance shutdown|
|Gävle||~165||~94%||~6%||Q3 | Q3 | Q3|
|Gruvön||~200||~92%||~8%||Q1-Q2 | Q2 | Q3|
|Frövi||~115||100%||Q4 | Q4 | Q4|
|Skärblacka||~130||~12%||~88%||Q2 | Q4 | Q4|
|Karlsborg||~90||100%||Q3 | Q3 | Q3|
|Pietarsaari||~15||100%||Q2 | – | Q4|
|Rockhammar||~15||100%||Q4 | Q3 | Q4|
|Escanaba||~180||100%||Q3 | – | –|
|Quinnesec||~400||100%||Q3 | – | –|