Q4 2024 Borregaard ASA Earnings Call Transcript
Key Points
- Borregaard ASA (FRA:BO4) achieved an all-time high EBITDA of NOK1,874 million for the full year, driven by increased specialization and strong results in BioSolutions.
- The company reported a 9% increase in operating revenues for the fourth quarter compared to the same period in 2023, mainly due to higher sales.
- BioSolutions segment saw a 7% increase in volume in the fourth quarter, with strong sales into agriculture, contributing to a robust performance.
- The Board proposed a 13% increase in dividends to NOK4.25 per share, reflecting a commitment to stable and progressive dividends.
- Borregaard ASA (FRA:BO4) is investing in environmental projects, such as the air preheater technology, which will reduce CO2 emissions by 7,000 tons and improve energy efficiency.
- Higher wood costs offset the positive results in BioMaterials, impacting overall profitability.
- Fine Chemicals segment experienced low deliveries in the fourth quarter, resulting in lower operating revenues compared to historical levels.
- The company's return on capital employed decreased to 17.1% from 18.3% in the previous year.
- Depreciation increased due to higher investments and leased assets, impacting earnings per share.
- The net currency impact was slightly negative for the full year, affecting overall financial performance.
Good morning, and welcome to this fourth-quarter 2024 presentation for Borregaard. My name is Per Sorlie, I'm the CEO of the company, and I will be joined this morning by our CFO, Per Bjarne Lyngstad. And we will take you through this agenda where I'll focus on the market-related issues, including the highlights for the year and the outlook for the coming year. And then Per Bjarne will come back with more details around the financial performance.
First, the highlights for the fourth quarter. EBITDA came in at NOK398 million compared to the NOK327 million in the same quarter last year. This was particularly driven by increased sales and a strong result in BioSolutions, but we also saw higher deliveries and an improved product mix in BioMaterials, but that was offset -- more than offset by increased wood costs. In this particular quarter, we also saw low deliveries inside Fine Chemicals, both of Fine Chemical intermediates and bioethanol, also slightly positive net currency effects in the quarter.
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