Borregaard reports third quarter 2022 results

2022-11-01

Nov. 1, 2022 - Borregaard’s operating revenues reached NOK 1,752 million (NOK 1,429 million)2 in the 3rd quarter of 2022. EBITDA increased to NOK 434 million (NOK 391 million). The result improved in all business areas. The net currency impact on EBITDA was positive compared with the 3rd quarter of 2021.

Increased sales prices and a strong product mix were the main reasons for the EBITDA improvement in BioSolutions and BioMaterials. For Fine Chemicals, the result improvement was due to increased sales prices and higher volume. Cost increases affected all business areas. In the quarter, Borregaard benefitted from its ability to switch between electricity, LNG and light oil to minimise energy costs.

Operating profit reached NOK 321 million (NOK 287 million). Profit before tax was NOK 309 million (NOK 269 million). Earnings per share was NOK 2.40 (NOK 2.12).

Borregaard will increase the production capacity for highly specialised lignin-based biopolymers. The project has a total cost of NOK 70 million and the volume expansion will be achieved through debottlenecking of existing facilities at the Sarpsborg biorefinery. The targeted area is mainly within batteries, but applications will also include oilfield chemicals, agrochemicals, pigments and dyes.

- Our diversified market and specialisation strategy demonstrated its resilience in the quarter. We are pleased with the strong performance and improvement in all business areas. The expansion investment in BioSolutions will contribute to further specialisation and growth for Borregaard, says President and CEO Per A. Sørlie.