Continued favourable markets
Borregaard’s operating revenues totalled NOK 925 million in the 4th quarter, compared to NOK 941 million in the corresponding period of 2011. EBITA1 amounted to NOK 89 million, compared to NOK 71 million in the 4th quarter of 2011. For the full year 2012 EBITA amounted to NOK 542 million, up NOK 6 million from 2011.
The stronger result in the 4th quarter, compared to 2011, is mainly due to a notable result improvement for Performance Chemicals. Market conditions continued in general to be favourable, although some soft spots still exist in Specialty Cellulose end markets, primarily construction and coatings. Reduced wood costs contributed positively, whilst a stronger Norwegian krone had a negative impact.
EBITA in Performance Chemicals improved significantly following volume increase, improved product mix, higher sales prices and reduced operating expenses. In Specialty Cellulose, the result declined due to a temporary weakening of the product mix. Within Other Businesses, progress was recorded in Ingredients and Fine Chemicals. Net financial items amounted to NOK -9 million (NOK -23 million)2 in the 4th quarter as the level of net interest-bearing debt declined significantly compared to 2011.
Full year 2012
For the full year, operating revenues were NOK 3,941 million (NOK 3,854 million) with an EBITA of NOK 542 million (NOK 536 million). Group profit before tax amounted to NOK 415 million (NOK 455 million) with a tax charge of NOK 140 million (NOK 135 million).
"Borregaard has delivered two strong years in a row. We are satisfied with the overall result level, the improvement within Performance Chemicals and the fact that we have been able to maintain prices for highly specialised cellulose", says CEO Per A. Sørlie.
1. Operating profit before amortization and other income and expenses
2. Figures in parentheses are for the corresponding period in the previous year