Sappi reports quarterly Ebitda increase of 6%

JSE-listed pulp and paper group Sappi’s earnings before interest, tax, depreciation and amortisation (Ebitda) saw a 6% quarter-on-quarter increase to $221-million for the three months ended September 31. Commenting on the group’s performance, CEO Steve Binnie said on Thursday that the company’s initiatives to reduce variable costs, in addition to the benefits of lower interest charges, helped mitigate higher paper pulp prices and a stronger rand/dollar exchange rate during the reporting period.    “Capital expenditure in 2018 is expected to increase to $450-million as we continue the conversions in both Europe and North America, complete the Saiccor and Ngodwana debottlenecking and start the upgrade of the Saiccor wood-yard,” he said.