Borregaard ASA Reports Strong EBITDA Growth in Q3 2024
Borregaard ASA Delivers Impressive Financial Results
Borregaard ASA has announced remarkable operating revenues of NOK 1,949 million in the third quarter. This represents a significant increase from NOK 1,714 million in the same period last year. The company’s EBITDA has reached NOK 524 million, up from NOK 482 million, illustrating strong performance across its business sectors.
Analysis of Revenue Growth
The growth in Borregaard's operating revenues can largely be attributed to increased sales volumes, particularly within its BioSolutions segment. This positive trend demonstrates Borregaard's ability to capture market demand and enhance productivity. In contrast, the BioMaterials sector faced challenges due to escalating wood costs and operating expenses, despite higher delivery volumes.
Fine Chemicals Segment Performance
The Fine Chemicals division has significantly contributed to Borregaard's improved financial results. The year-on-year growth in this area was driven by a marked increase in the delivery of bioethanol coupled with a favorable product mix for fine chemical intermediates. This segment’s success highlights Borregaard's strategic focus on developing high-value specialty chemicals.
Profitability and Future Outlook
Profit before tax for the quarter stood at NOK 326 million, marginally higher than the NOK 318 million reported in the previous year. Earnings per share also demonstrated growth, rising to NOK 2.51 from NOK 2.38. These metrics reflect the company's resilience and commitment to delivering value to its shareholders.
Strategic Investments for Growth
Borregaard ASA plans to allocate NOK 490 million towards enhancing capacity at its Sarpsborg facility. This initial debottlenecking project is part of a two-step strategy aimed at increasing production capabilities by 5-10% by 2027. The expected ramp-up in production output will begin in the latter half of 2026, showcasing Borregaard's forward-thinking approach to meeting future market demands.
President and CEO Per A. Sørlie expressed satisfaction with the Group’s robust performance during the quarter. He stated, "The strategic investment decision to enhance the Sarpsborg site will not only boost our production capabilities for lignin-based biopolymers and specialty cellulose but also promote better raw material utilization and reduce effluents to water.” This strategy aligns with Borregaard's commitment to sustainability and efficiency.
Contact Information for Investors
For any inquiries, interested parties can reach out to:
Director Investor Relations: Knut-Harald Bakke, +47 905 79 164
SVP Organisation and Public Affairs: Dag Arthur Aasbø, +47 918 34 108
Frequently Asked Questions
What were Borregaard's operating revenues for Q3 2024?
Borregaard's operating revenues for the third quarter of 2024 were NOK 1,949 million.
How much did Borregaard incur in EBITDA for this quarter?
The EBITDA for Borregaard in Q3 2024 was NOK 524 million.
What are the key growth drivers in Borregaard’s performance?
The main drivers of growth include increased sales volumes in BioSolutions and higher deliveries in Fine Chemicals.
What is Borregaard's plan for its Sarpsborg facility?
Borregaard plans to invest NOK 490 million to increase production capacity at the Sarpsborg site.
Who can be contacted for more information about Borregaard?
Contact Knut-Harald Bakke or Dag Arthur Aasbø for inquiries regarding investor relations.
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