Borregaard reports fourth quarter 2022 results

2023-03-13

Mar. 1, 2023 - Borregaard’s operating revenues reached NOK 1,770 million (NOK 1,446 million)2 in the 4th quarter of 2022. EBITDA1 increased to NOK 364 million (NOK 263 million). BioMaterials and Fine Chemicals had significant result improvements while BioSolutions had a decrease. The net currency impact on EBITDA1 was positive compared with the 4th quarter of 2021.

Increased sales prices in addition to a higher volume and a favourable product mix were the main reasons for the EBITDA1 improvement in BioMaterials. The result improvement in Fine Chemicals was due to increased sales prices and a higher bioethanol sales volume. Reduced margin and volume for traded vanillin products were the main reasons for the EBITDA1 decrease in BioSolutions. Cost increases affected all business areas.

Operating profit reached NOK 228 million (NOK 156 million). Net financial items were NOK -18 million (NOK -24 million). Profit before tax was NOK 210 million (NOK 132 million). Earnings per share were NOK 1.85 (NOK 1.02).

Borregaard will invest NOK 230 million to reduce CO2 emissions and increase energy flexibility at the biorefinery in Norway. This investment will allow for a 30,000 tonnes annual reduction of CO2 emissions by replacing liquified natural gas (LNG) with electricity and by improved energy efficiency. In addition, there is a significant cost reduction potential by removing absolute dependency on LNG and introducing more options to switch between alternative energy sources.

FULL YEAR 2022

Operating revenues increased to NOK 6,881 million (NOK 5,805 million). EBITDA1 increased to an all-time high of NOK 1,643 million (NOK 1,372 million). Profit before tax was NOK 1,118 million (NOK 873 million). Earnings per share were NOK 8.95 (NOK 6.95).

- We are pleased with the strong performance and improved results in all business areas in 2022. Borregaard’s specialisation strategy and diversified market positions, have proven its resilience in the face of significant cost inflation, says President and CEO Per A. Sørlie.