All-time high ebitda² of nok 361 million in the 2nd quarter

Borregaard’s operating revenues increased to NOK 1,358 million (NOK 1,340 million)¹ in the 2nd quarter of 2020. EBITDA² reached an all-time high of NOK 361 million (NOK 283 million). BioMaterials and Fine Chemicals had improved results, whereas BioSolutions had a result in line with the same period last year.

BioSolutions had a significant reduction in raw material supply and hence lower sales volume, offset by an improved product mix and favourable currency effects. In BioMaterials, lower wood and energy costs, high production volume and positive currency effects more than compensated for a lower sales volume. For Fine Chemicals, sales of bioethanol to disinfectants was the main reason for the improved result. The total net currency impact on EBITDA was approximately NOK 30 million compared with the corresponding period in 2019.

During the 2nd quarter, effects related to the coronavirus situation started to materialise in sales and results. The discontinued raw material supply to LignoTech South Africa and reduced demand in some biopolymers sectors and certain cellulose grades all had a negative effect, while the increased sales of bioethanol to disinfectants contributed positively.

Other income and expenses were NOK -96 million (NOK -16 million) in the 2nd quarter, mainly due to impairment of assets and restructuring costs related to the mothballed operation in South Africa.

Profit before tax was NOK 133 million (NOK 140 million). Earnings per share were NOK 1.01 (NOK 1.22).

- We are pleased with the Group’s strong performance and the way our organisation has handled a demanding period with significant disruptions for our operations, says President and CEO Per A. Sørlie.

Contacts: Director Investor Relations, Jørn Syvertsen, +47 958 36 335 SVP Organisation and Public Affairs, Dag Arthur Aasbø, +47 918 34 108

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