Borregaard: All-time high result for the Group

Borregaard's 2^nd quarter results
Borregaard's operating revenues were NOK 1,167 million (NOK 1,054 million)¹ in the 2^nd quarter of 2016. EBITA adjusted² increased to NOK 200 million (NOK 131 million), an all-time high quarterly result. Compared with the 2^nd quarter of 2015, all business areas improved their EBITA adj. Currency, including hedging effects, contributed positively by approximately NOK 75 million, benefitting all business areas. Energy conservation measures contributed to lower production costs at the Sarpsborg site.

Performance Chemicals achieved an all-time high quarterly EBITA adjusted level as positive currency effects and an increased sales volume more than off-set a weaker product mix and slightly lower prices in sales currency. The progress in Specialty Cellulose was mainly due to positive currency effects, a better product mix and lower production costs. The improved EBITA adjusted in Other  Businesses was due to positive currency effects and a strong quarter for Fine Chemicals, partly off-set by a higher net cost level (including EU grant) for the Exilva project.

Profit before tax was NOK 207 million (NOK 125 million). Earnings per share were NOK 1.54 (NOK 0.92).

- We are pleased to see improvements in all business areas. Favourable currency rates and market reallocation efforts in lignin contributed to another all-time high result both for the Group and Performance Chemicals, 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 amortization and other income and expenses