Release Date: May 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The order book for Hossa looks healthy for the second quarter and the rest of the year, indicating positive future prospects.
- Agorobium reported higher revenue and EBITDA compared to the same quarter last year, showing strong performance.
- Borgestad ASA has a strong balance sheet with sustainable debt levels and a good cash situation.
- Occupancy at Agorobium stands at 95.8% with expectations to increase to 97-98% based on ongoing negotiations.
- Borgestad ASA is optimistic about the remainder of the year, with good prospects for increased revenue and EBITDA.
Negative Points
- The first quarter was weaker than last year due to lower activity within Hers Boogista and low season impacts.
- Revenue dropped by 8.8% in the first quarter compared to the same quarter last year, ending at 186 million NOK.
- The company recorded an adjusted EBIT of negative 11.5 million NOK, significantly behind last year's performance.
- Net financials were negatively affected due to increased costs in the first quarter of 2025.
- A local citizen's complaint has delayed the completion of a sale leaseback agreement in Sweden, with a court ruling against the transaction.
Q & A Highlights
Q: Regarding the real estate property in Sweden, there are two different valuations on the property. Are these valuations in line with the sale price that has been negotiated?
A: PÃ¥l Feen Larsen, CEO: The valuations completed in 2022 for the two properties are in line with the transaction price agreed upon. The municipality also conducted an external valuation, which aligns with the transaction value. This consistency supports our expectation that the transaction will proceed as planned.
Q: Can you provide more specific details on the cost-cutting measures you mentioned?
A: Bendik Andersen, Head of M&A and IR: We are currently outlining the details, focusing on optimizing rent and other parts of the cost base. The goal is to balance having a sufficient base for the high season while reducing costs during the low season. Implementation will occur in the coming months.
Q: Any new developments on converting the parking facility into a consumer store for groceries?
A: PÃ¥l Feen Larsen, CEO: We are still working on it, with good prospects and financials. We are dealing with local permissions and negotiations with potential tenants. The timeline is extended, but we expect a final decision by the end of the year.
Q: How do you view the weaker first quarter performance in the context of broader market conditions?
A: Bendik Andersen, Head of M&A and IR: We do not see the weak first quarter as indicative of a broader slowdown. While there is some industry slowdown and project postponements, our refractory business is resilient to market fluctuations. We are monitoring the market closely and may implement further cost reductions if necessary.
Q: What is the outlook for Borgestad ASA for the remainder of the year?
A: PÃ¥l Feen Larsen, CEO: We are optimistic for the rest of the year. The order book and prospects for Hossa look good, and we are implementing activities to secure a lower cost base. Agorobium has good momentum, and we expect increased occupancy and revenue going forward.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
