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1st quarter 2016 results

Borregaard presented 1st quarter 2016 results on Wednesday 27 April 2016 at 07:00 CET.

Press release:
Borregaard: All-time high result for the Group and for Performance Chemicals

Borregaard’s 1st quarter results

(27.04.2016) Borregaard’s operating revenues reached NOK 1,113 million (NOK 1,007 million)¹ in the 1st quarter of 2016. EBITA² increased to NOK 171 million (NOK 105 million), an all-time high quarterly result.

Performance Chemicals and Specialty Cellulose both improved their EBITA, while there was a decline in Other Businesses. Currency contributed positively in all business areas. Raw material, energy and other costs were stable. Production and sales from the Sarpsborg site were slightly lower than in the 1st quarter of 2015 as a result of the silo fire incident in October 2015, but the EBITA impact was limited due to insurance coverage.

Performance Chemicals achieved an all-time high quarterly EBITA due to favourable currency effects. The acquired Flambeau business resulted in an 8% increase in the lignin sales volume. The challenging market conditions in the construction and oil sectors continued. The improvement in Specialty Cellulose was primarily due to beneficial currency effects. Lower prices in sales currency were largely offset by an improved product mix. The EBITA decline in Other Businesses was mainly due to higher activity and costs in the Exilva project.

Profit before tax was NOK 161 million (NOK 100 million). Earnings per share in the 1st quarter were NOK 1.21 (NOK 0.74).

- Positive currency effects contributed to an all-time high result both for the Group and for Performance Chemicals. The general market conditions for lignin remain challenging, but we are pleased that our efforts to reallocate volumes are gaining momentum, says President and CEO Per A. Sørlie.

1.            Figures in parentheses are for the corresponding period in the preceding year
2.            Operating profit before amortization and other income and expenses