Seasonal effects

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 however slightly lower in the summer 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 operation, Billerud’s production units normally require more extensive maintenance at some time during the year. Maintenance requires the production of pulp, paper and board to stop. The main financial impact from a maintenance shutdown is comprised of volume losses arising from the shutdown and an increase in 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 maintenance shutdowns vary depending on volume losses, the extent and nature of measures carried out, and the actual length of the shutdown. 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.
From 2024 the estimated cost impact of a maintenance shutdown is calculated as the sum of the fixed costs for the maintenance, increased variable costs associated with the shutdown and lower fixed cost coverage from reduced capacity utilization during the stop.

Estimated cost impact from planned maintenance shutdowns

Production unit Estimated cost impact Estimated breakdown of cost impact Planned dates of maintenance shutdown
   SEKm Region Europe

 Region North America

Gävle ~170 100% 0% Q3 | Q3 | Q3
Gruvön ~240 100% 0% Q2 | Q2 | Q1-Q2
Frövi ~80 100% 0% Q4 | Q4 | Q4
Skärblacka ~130 100% 0% Q2 | Q2 | Q2
Karlsborg ~90 100% 0% Q3 | Q3 | Q3
Pietarsaari ~20 100% 0% Q2 |  –  | Q2
Rockhammar ~10 100% 0% Q4 | Q4 | Q4
Escanaba ~110 0% 100% Q3-Q4 |  Q3-Q4  | Q3
Quinnesec ~135 0% 100% Q2 |  –  | Q3