Latest news with #BioSolutions
Yahoo
2 days ago
- Business
- Yahoo
Borregaard ASA: Change in Group Executive Management
Knut-Harald Bakke has been appointed EVP BioSolutions, effective 1 August 2025. He will also join the Group Executive Management on the same date. Bakke succeeds Tom Erik Foss-Jacobsen, who will assume the role of CEO on 1 August (see stock exchange release dated 23 May 2025). Bakke currently serves as Director of Investor Relations and has previously held the position of Energy Director at Borregaard. Prior to joining the company in 2019, he held senior leadership roles at Norsk Hydro, where he was responsible for global energy market operations. He holds an MSc in Industrial Economics and Technology Management from the Norwegian University of Science and Technology (NTNU). Borregaard will initiate a process to appoint a new Director of Investor Relations. In the interim, CFO Per Bjarne Lyngstad will assume the responsibility from 1 August. Contacts:Dag Arthur Aasbø, SVP Organisation and Public Affairs, +47 918 34 108Per Bjarne Lyngstad, CFO, +47 952 44 515 This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
Yahoo
23-05-2025
- Business
- Yahoo
Borregaard ASA: Tom Erik Foss-Jacobsen appointed CEO of Borregaard
Tom Erik Foss-Jacobsen has been appointed CEO of Borregaard ASA. He succeeds Per A. Sørlie, who will retire after 26 years in the position (see notice to Oslo Stock Exchange 3 December 2020). The appointment will be effective 1 August 2025. 'I am pleased that Tom Erik Foss-Jacobsen has accepted the position as CEO of Borregaard. With Foss-Jacobsen, Borregaard will get a leader with in-depth understanding of the business and previous experience from significant parts of Borregaard's international operations. Over several years, he has delivered strong results and has made a significant contribution to developing a robust and common culture and strategic understanding throughout the company. We are confident that he has the qualities necessary to further develop the company in the years to come,' says Helge Aasen, chair of Borregaard's Board of Directors. Tom Erik Foss-Jacobsen is currently Executive Vice President (EVP) and head of the BioSolutions (lignin-based biopolymers and vanillin products), a position he has held since 2019. Prior to that, he was EVP and head of BioMaterials (speciality cellulose and bioethanol) in Borregaard. Foss-Jacobsen holds a master's degree in international marketing and strategy and a bachelor's degree in civil engineering. He has more than 25 years' experience from Borregaard, including 21 years in leadership roles. 'I have been fortunate to be part of an exciting journey in Borregaard's commercial organisation. I'm proud of how Borregaard's highly competent organisation has continuously advanced our specialisation strategy by growing high-value business, driving diversification, and delivering solid results. I approach the responsibilities of my new role with humility and a deep sense of commitment. With a comprehensive understanding of our organisation's operations and strategic objectives, I am confident in our collective ability to continue driving sustainable growth and creating value for both Borregaard and its stakeholders,' says Foss-Jacobsen. Per A. Sørlie has worked in Borregaard for 35 years and will leave the company at the end of September 2025. 'Per A. Sørlie has made significant contributions to Borregaard over more than 26 years as CEO, following nine years in key leadership roles within the company. He has been instrumental in shaping Borregaard's strategy, leading the transformation into a bio-based specialty chemicals company with strong global market positions. Since the company's listing on the Oslo Stock Exchange in 2012, Sørlie has played a pivotal role in driving substantial profit growth and increasing shareholder value. Moreover, he has fostered a robust commercial culture and developed leaders capable of advancing the business in the years ahead,' says Aasen. The Board will grant Foss-Jacobsen stock options at the accession date 1 August in accordance with the company's remuneration policy for long-term incentive schemes. Contacts:Director Investor Relations, Knut-Harald Bakke, +47 905 79 164Director Communications, Tone Horvei Bredal, +47 924 67 711 This information is subject to the disclosure requirements pursuant to Section 5 -12 of the Norwegian Securities Trading Act. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Borregaard ASA (STU:BO4) Q1 2025 Earnings Call Highlights: Record Revenues and Strong ...
Revenue: Operating revenues increased by 3% year-over-year, surpassing NOK2 billion for the first time in a single quarter. EBITDA: Increased by NOK69 million to NOK511 million, with a margin of 25.1%, up 2.7 percentage points from the previous year. Earnings Per Share: Increased to NOK2.52 from NOK2.01 in the first quarter of the previous year. BioSolutions EBITDA: Reached NOK349 million, an increase of NOK85 million from the previous year, driven by strong sales to agriculture. BioMaterials EBITDA: NOK113 million, slightly up from NOK111 million the previous year, despite lower sales volume and increased wood costs. Fine Chemicals EBITDA: Decreased to NOK49 million from NOK67 million, primarily due to lower bioethanol sales prices. Net Currency Effects: Positive impact of approximately NOK45 million compared to the previous year. Cash Flow from Operating Activities: NOK129 million, with investments totaling NOK143 million. Net Interest-Bearing Debt: Decreased by NOK114 million, with a leverage ratio of 1.09. Equity Ratio: 58% at the end of the first quarter. Warning! GuruFocus has detected 2 Warning Sign with SVNLF. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Borregaard ASA (STU:BO4) reported an all-time high EBITDA of NOK511 million for the first quarter, driven by strong sales in the BioSolutions segment. The company experienced a significant increase in operating revenues, surpassing NOK2 billion for the first time in a single quarter. Strong sales to agriculture contributed to an 8% increase in operating revenues for BioSolutions compared to the first quarter of 2024. The EBITDA margin improved to 25.1%, which is 2.7 percentage points higher than the same quarter in 2024. Borregaard ASA (STU:BO4) benefited from positive net currency effects, contributing NOK45 million to the quarter's results. BioMaterials segment faced challenges with lower sales volume and increased wood costs, offsetting higher sales prices. Fine Chemicals segment experienced a decrease in operating revenues due to lower sales prices for bioethanol. The company is facing potential impacts from tariffs and trade wars, introducing uncertainty in the BioMaterials segment. Wood costs remain high, with no expected change in the second quarter, impacting overall cost management. Fine Chemicals segment's EBITDA margin decreased by 7.5 percentage points compared to the same quarter last year. Q: Can you give some more flavor on what is driving the strong uplift in profits for the agricultural products? Have you launched new products, hired new sales teams? Is demand from customers shifting? A: The strong uplift is primarily due to the green nature of our products, which are favorable in current market conditions, especially in biocontrol. Our products enable farmers to blend different products like fertilizers and pesticides, saving time and costs. We have also established an agricultural lab in Mumbai to continuously develop and improve our products. Q: Can you please help us understand what is behind the reported net FX EBITDA impact in 2025 estimated to be approximately plus NOK125 million versus 2024? A: The effect mainly comes from changes in hedging losses and currency rate movements. The strengthening of the Norwegian Kroner has reduced currency losses and the impact from currency rates, resulting in a lower net FX impact compared to what was reported after Q4. Q: For BioMaterials, how much visibility do you have on the remaining 115,000 tonnes you estimate will be delivered through 2025? A: We have multi-year volume-based contracts with annual and now semi-annual price negotiations. The construction market remains soft, affecting demand for ether grade products. However, other customer groups are more stable, and we are closely monitoring demand from the construction sector. Q: It seems like you have changed your price terms in BioMaterials from annual to semiannual negotiations. Can you explain why that is? A: The change to semiannual negotiations provides flexibility to adjust prices in response to abrupt cost changes, as seen during the COVID pandemic. This evolution allows both us and our customers to adapt to market conditions more effectively. Q: On BioSolutions, you mentioned a 2% price increase on average in sales currency. Is that a fair assumption for the remainder of the year? A: The 2% increase is primarily driven by product mix improvement rather than pricing changes. The pricing in sales currency is fairly flat, with the increase mainly due to a better product mix. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
21-04-2025
- Business
- Yahoo
Borregaard ASA (FRA:BO4) Q4 2024 Earnings Call Highlights: Record EBITDA and Strategic ...
EBITDA (Q4 2024): NOK398 million, up from NOK327 million in Q4 2023. Full Year EBITDA (2024): NOK1,874 million, compared to NOK1,781 million in 2023. Return on Capital Employed (2024): 17.1%, down from 18.3% in 2023. Dividend Proposal (2024): NOK4.25 per share, a 13% increase from last year, representing 52% of net earnings. BioSolutions Sales Volume (Q4 2024): Increased by 7%. BioMaterials Sales Volume (Full Year 2024): 160,000 tons, 11% higher than 2023. Fine Chemicals Sales (Q4 2024): NOK138 million, lower than historical context. Operating Revenues (Q4 2024): 9% higher than Q4 2023. EBITDA Margin (Q4 2024): 22.8%, 2.4 percentage points above Q4 2023. Earnings Per Share (Q4 2024): NOK1.30, up from NOK1.20 in Q4 2023. Full Year Operating Revenues (2024): NOK7.6 billion, a 7% increase from 2023. BioSolutions EBITDA (Q4 2024): NOK251 million, NOK79 million above Q4 2023. BioMaterials EBITDA (Full Year 2024): NOK434 million, compared to NOK534 million in 2023. Fine Chemicals EBITDA (Full Year 2024): NOK336 million, slightly above 2023. Cash Flow from Operating Activities (Q4 2024): NOK314 million. Investments (Full Year 2024): NOK861 million. Net Interest-Bearing Debt (End of 2024): Increased by NOK449 million. Equity Ratio (End of 2024): 53%. Leverage Ratio (End of 2024): 1.20. Warning! GuruFocus has detected 1 Warning Sign with BOM:533519. Release Date: January 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Borregaard ASA (FRA:BO4) achieved an all-time high EBITDA of NOK1,874 million for the full year, driven by increased specialization and strong results in BioSolutions. The company reported a 9% increase in operating revenues for the fourth quarter compared to the same period in 2023, mainly due to higher sales. BioSolutions segment saw a 7% increase in volume in the fourth quarter, with strong sales into agriculture, contributing to a robust performance. The Board proposed a 13% increase in dividends to NOK4.25 per share, reflecting a commitment to stable and progressive dividends. Borregaard ASA (FRA:BO4) is investing in environmental projects, such as the air preheater technology, which will reduce CO2 emissions by 7,000 tons and improve energy efficiency. Higher wood costs offset the positive results in BioMaterials, impacting overall profitability. Fine Chemicals segment experienced low deliveries in the fourth quarter, resulting in lower operating revenues compared to historical levels. The company's return on capital employed decreased to 17.1% from 18.3% in the previous year. Depreciation increased due to higher investments and leased assets, impacting earnings per share. The net currency impact was slightly negative for the full year, affecting overall financial performance. Q: Why was there no significant release in net working capital in Q4 2024, given it was the weakest movement since 2018? A: Per Lyngstad, Chief Financial Officer: The strong sales and production towards the end of the year increased inventories, which affected net working capital. Despite this, the average net working capital decreased for the year, indicating normal fluctuations within expected ranges. Q: What caused the increase in depreciation, and is it a permanent change? A: Per Lyngstad, Chief Financial Officer: The increase is due to higher investments and increased depreciation on leased assets, including storage. While depreciation related to leasing may decrease over time, increased investments will continue to raise depreciation levels. Q: How has Borregaard managed to keep wood costs stable despite rising commodity prices? A: Per Sorlie, President, Chief Executive Officer: Borregaard sources wood from a mix of geographies and types, including wood chips and pulpwood. Logistics costs, which account for about 25% of wood costs, also play a significant role in maintaining stable costs. Q: Will the sales prices for Borregaard's bioethanol in 2025 be similar to 2022 levels, and how will this affect EBITDA? A: Per Sorlie, President, Chief Executive Officer: While prices may align with 2022 levels, other factors like volume growth in Fine Chemical intermediates and bioethanol will positively impact EBITDA, making direct comparisons to 2022 challenging. Q: Why is Borregaard guiding for only 1% volume growth in BioSolutions for 2025 despite strong growth in 2024? A: Per Sorlie, President, Chief Executive Officer: The focus remains on improving the product mix and increasing sales of specialties, which drive profitability more than overall volume growth. The 2025 guidance reflects a normalized supply level. Q: How will the new investment impact LNG consumption? A: Knut-Harald Bakke, Director of Investor Relations: The investment will further reduce Borregaard's dependency on LNG, which has already decreased significantly since the energy crisis in 2022-2023. Increased electricity contracts will also contribute to reduced LNG consumption. Q: What triggered the NOK30 million environmental provision in Q4, and are all environmental liabilities covered? A: Per Lyngstad, Chief Financial Officer: The provision addresses legacy issues from a former mercury-based chlor-alkali plant. While not all liabilities are fully covered, Borregaard has made provisions based on current estimates and continues to monitor environmental issues. Q: What are the main drivers behind the increasing wood prices, and will this trend reverse in 2025? A: Per Sorlie, President, Chief Executive Officer: Factors include reduced wood supply due to the Russian invasion of Ukraine and sustainability pressures. While Borregaard can manage these costs, the trend's reversal depends on global demand and supply dynamics. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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