Q2 2025 Borregaard ASA Earnings Call Transcript
Key Points
- EBITDA increased to NOK522 million, up from NOK510 million in the same quarter last year, indicating strong financial performance.
- BioSolutions segment showed strong growth driven by increased sales to agriculture, contributing positively to overall results.
- BioMaterials segment experienced a 19% increase in operating revenues due to higher sales prices and volumes, with a significant improvement in EBITDA.
- Positive net currency effects across all business areas contributed an additional NOK35 million to EBITDA.
- The Board approved a NOK138 million environmental investment at the Sarpsborg refinery, expected to reduce CO2 emissions by up to 18,000 tonnes and lower energy costs.
- Fine Chemicals segment saw a decline in results due to lower sales prices for bioethanol, with EBITDA dropping to NOK41 million from NOK102 million in the previous year.
- Increased wood costs partially offset the positive performance in the BioMaterials segment.
- The market for advanced bioethanol remains challenging due to supply-demand imbalances driven by EU incentives.
- The EBITDA margin for Fine Chemicals decreased significantly by 21 percentage points compared to the same quarter last year.
- Uncertainty related to tariffs, conflicts, and geopolitical tensions may impact Borregaard ASA's market and costs in the future.
Good morning, and welcome to the second quarter 2025 presentation for Borregaard. My name is Per Sørlie, I'm the CEO of the company, and I'll be joined during this presentation by Per Lyngstad, our CFO, and we will take you through this agenda.
I'll talk about the highlights in the quarter, the market situation for the business segments and environmental investment that we have just passed at the Board level and also the outlook for the remainder of the year. And then Per Bjarne will come back and talk about the financial performance in more detail.
Firstly, the highlights for the second quarter. EBITDA came in at NOK522 million, up from NOK510 million in the same quarter last year. We saw strong performance in BioSolutions, where the growth, again, was driven by increased sales to agriculture. We also saw a very good result in BioMaterials, where higher sales prices, improved product mix, and increased sales volume contributed positively, but this was partly offset by increased wood costs.
In Fine Chemicals, the
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