Borregaard: EBITDA of NOK 266 million in the 3rd quarter

2020-11-11

Nov. 11, 2020 - Borregaard’s operating revenues increased to NOK 1,260 million (NOK 1,239 million)1 in the 3rd quarter of 2020. EBITDA2 was NOK 266 million (NOK 286 million). Fine Chemicals had an improved result, whereas BioSolutions and BioMaterials had weaker results compared with the corresponding quarter in 2019.  

During the 3rd quarter, Covid-19 affected sales and results. Negative effects on demand for certain biopolymers specialities and less specialised cellulose grades are mainly related to the coronavirus situation.

For BioSolutions, higher costs related to transatlantic shipments and low demand in the US market affected the result negatively. In BioMaterials, the effect of a reduced sales volume was offset by lower wood and energy costs. For Fine Chemicals, higher sales volume and prices for bioethanol were the main reasons for the improved result. The total net currency impact on EBITDA was slightly negative compared with the same quarter in 2019.

Profit before tax was NOK 133 million (NOK 156 million). Earnings per share were NOK 1.12 (NOK 1.31).

-  Our third quarter results were influenced by a Covid-19 related drop in demand, particularly for some of our biopolymers specialities in the US market. We are pleased to report progress in Fine Chemicals, says President and CEO Per A. Sørlie.

1. Figures in parentheses are for the corresponding period in the preceding year
2. Operating profit before depreciation, amortisation and other income and expenses