Norway's Borregaard Q3 EBITDA hits record, beats analyst estimates

Overview

• Norway biorefinery's Q3 operating revenue rose yr/yr, EBITDA hit record and beat analyst expectations

• All business areas reported higher results, driven by price increases and cost reductions

• Company benefited from cost improvement programme, energy optimisation and positive currency effects

Outlook

• Borregaard did not provide specific guidance for future quarters or the full year in the press release

Result Drivers

• PRICE INCREASES AND COST REDUCTIONS - BioSolutions result improved due to selective price increases and reduced costs

• HIGHER DELIVERIES AND STRONG PRODUCTION - BioMaterials achieved all-time high result due to higher deliveries and strong production

• COST IMPROVEMENT PROGRAMME AND ENERGY OPTIMISATION - Savings from ongoing cost improvement programme and energy system optimisation contributed positively

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Borregaard ASA is NOK177.50, about 24% above its October 27 closing price of NOK143.20

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)