Q3 2024 Borregaard ASA Earnings Call Transcript
Key Points
- Borregaard ASA (FRA:BO4) reported an increase in EBITDA to NOK524 million, up from NOK482 million in the same quarter last year, driven by increased sales volume in biosolutions.
- The fine chemicals segment delivered a strong performance with significantly higher deliveries in bioethanol and a favorable product mix for pharmaceutical intermediates.
- The company announced a capacity increase at the biorefinery in Sarpsborg, with an investment of NOK490 million, expected to deliver a 5% to 10% capacity increase by 2027.
- Operating revenues in biosolutions increased by 8% compared to the third quarter last year, mainly due to higher sales volume in agriculture.
- Borregaard ASA (FRA:BO4) maintained a strong financial position with an equity ratio of 56% and a leverage ratio of 1.15.
- Increased wood costs and general cost inflation offset the higher sales volume, impacting the overall financial performance.
- Biomaterials segment experienced a lower result despite higher deliveries and price increases, due to increased wood costs and operating expenses.
- The biovanillin market remains challenged by a high supply of synthetic vanillin products, affecting sales.
- The company anticipates seasonal increases in energy consumption and energy-related raw material prices as winter approaches.
- Net currency effects were slightly positive but largely offset by increased hedging losses, impacting the financial results.
Good morning, and welcome to this third-quarter 2024 presentation for Borregaard. My name is Per Sørlie, and I'm the President and CEO of the company. And I will be joined this morning by our CFO, Per Bjarne Lyngstad.
At the end of the presentation, we will conduct a Q&A session. And if you are watching this live on web, you are welcome to put forward questions throughout the presentation. And we'll come back at the end of the presentation and give you some comments.
We'll take you through this agenda. I'll talk about the highlights on the market side in the third quarter, go through the different business segments. And we will also -- we have also announced today that we will initiate a capacity increase at the biorefinery in Sarpsborg, and then I will conclude with the outlook. And then Per Bjarne will come back and take a more closer look at the financial figures.
The highlights for the third quarter, we delivered -- we are pleased with an EBITDA of NOK524 million compared to NOK482 million in the same
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