4th quarter 2017 results

Improvement in Speciality Cellulose, decline in Performance Chemicals and Other Businesses

Borregaard’s operating revenues reached NOK 1,137 million (NOK 1,110 million)1 in the 4th quarter of 2017. EBITA adj.2  was NOK 109 million (NOK 160 million). Speciality Cellulose had an improved result compared with the corresponding quarter of 2016, whereas Performance Chemicals and Other Businesses had a decline. Net currency impact was positive. Costs increased, partly as a result of technical problems in the chlor-alkali plant.

For Performance Chemicals, lower average sales price and higher costs were the main reasons for the lower EBITA adj.2. The improved result in Speciality Cellulose was mainly due to a favourable product mix, positive currency effects and higher contribution from Bioethanol, partly off-set by increased caustic soda and wood costs. Other Businesses had a weaker EBITA adj.2 mainly as a result of lower shipments in Fine Chemicals, higher net costs in Cellulose Fibrils and higher net corporate costs.

Profit before tax was NOK 89 million (NOK 151 million). Earnings per share were NOK 0.90 (NOK 1.23).

Full year 2017

Operating revenues in 2017 increased to NOK 4,618 million (NOK 4,492 million). EBITA adj.2 reached an all-time high of NOK 749 million (NOK 747 million). Profit before tax was NOK 715 million (724 million). Earnings per share increased to NOK 5.66 (NOK 5.55)

-  We are pleased to report another strong full-year result, in spite of continued strong competition for lignin in the construction sector. Execution of our strategic investment initiatives are on track, says President and CEO Per A. Sørlie.

Contacts:
Director Investor Relations, Jørn Syvertsen, +47 958 36 335
Communication Manager, Tone Horvei Bredal, +47 924 67 711

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

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.