Strong results

Borregaard’s 3rd quarter 2012:

Favourable markets and strong results for Borregaard(30 October 2012) Borregaard’s operating revenues totalled NOK 999 million in the 3rd quarter, compared to NOK 957 million in the corresponding period of 2011. EBITAi amounted to NOK 170 million, compared to NOK 172 million in the corresponding quarter of 2011.

The strong result in the 3rd quarter is mainly due to continued favourable market conditions for Performance Chemicals and Specialty Cellulose, although some soft spots are increasingly apparent in specialty cellulose end markets, primarily in construction and coatings.

EBITA in Performance Chemicals improved following a volume increase of 5%, an improved product mix and higher prices. In Specialty Cellulose, the result continued at a high level, but was negatively affected by product mix. Within Other Businesses, progress was recorded in Fine Chemicals, whilst profit in Ingredients declined. Net profit after tax amounted to NOK 92 million (NOK 105 million) in the 3rd quarter of 2012.

The preparations for launching an IPO of Borregaard were pursued throughout the 3rd quarter culminating in Borregaard being listed on the Oslo Stock Exchange on 18 October. Following the IPO, Borregaard has a diversified shareholder structure, with close to 7,800 shareholders and a foreign ownership of approximately 57%. Orkla’s ownership will be between 6.85% and 19% after a stabilization period of 30 days.

"We are satisfied to deliver another strong quarterly result close to all-time high for Borregaard. The IPO represents an important milestone for the company. We are pleased by the international interest in the share and believe that a listing will be a good ownership solution for the company", says President and CEO Per A. Sørlie.

1 Operating profit before amortization and other income and expenses