Q3 2025 Borregaard ASA Earnings Call Transcript
Key Points
- Borregaard ASA (BRRDF) reported a positive net currency effect across all business areas, contributing approximately NOK30 million to EBITDA.
- The company saw continued sales growth in the agriculture sector, marking the seventh consecutive quarter of growth.
- Borregaard ASA (BRRDF) committed to a second phase of capacity expansion at the Sarpsborg site, expected to increase production capacity by 5% to 10% and deliver environmental and cost benefits.
- Fine Chemical Intermediates delivered a strong result, supported by a more favorable product mix and higher sales prices compared to the previous year.
- Borregaard ASA (BRRDF) maintained a strong cash flow from operating activities, amounting to NOK423 million in the third quarter.
- EBITDA decreased to NOK440 million from NOK524 million in the same quarter last year, primarily due to lower bioethanol prices and disruptions in cellulose production.
- Operating revenues declined by 8% compared to the third quarter of 2024, mainly due to lower sales volume in Biomaterials and lower sales prices for bioethanol.
- The company faced allegations of dumping specialty cellulose products into the US market, potentially leading to additional costs for legal defense.
- Bioethanol sales prices continued to decline due to increased market supply driven by favorable incentives in Europe.
- Higher wood costs impacted the Biomaterials segment, with an above-normal inventory level at higher prices at the beginning of the quarter.
Good morning, and welcome to the third quarter 2025 presentation for Borregaard. My name is Tom Erik Foss-Jacobsen. I'm the new CEO since August 1. And I'll be joined today by Per Bjarne Lyngstad, our CFO. And we will take you through this agenda.
I'll begin with the key highlights from the quarter and provide an update on the market situation across our business segments. I will then share details on our second investment to increase capacity at our site in Sarpsborg, which has recently been approved on the Board level as well as our participation in a convertible loan to Alginor.
Finally, I'll summarize outlook for the remainder of the year before handing over to Per Bjarne, who will walk you through the financial performance in more detail. Before we continue, I just would like to remind to those of you watching the webcast live that you're welcome to submit questions at any time during the presentation, and we'll address them at the end of the presentation.
Let's begin with the highlights for the
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