Borregaard Q2 EBITDA Holds at NOK 515M; Alginor Impairment Hits

Borregaard (BRGAY) reported second-quarter EBITDA of NOK 515 million, down from NOK 522 million a year earlier. The result was in line with a strong prior-year quarter, CEO Tom Foss-Jacobsen said on the July 16 earnings call.

An impairment of NOK 337 million on Borregaard's investment in Alginor weighed on the reported figures. Alginor's three main shareholders are Borregaard, Must Invest and Hatteland.

Operationally, the three business segments moved in different directions. BioSolutions posted higher sales volumes, though the product mix shifted against the company. BioMaterials delivered record production and high delivery volumes. Fine Chemicals produced another solid quarter.

BioSolutions includes vanillin and specialty ingredients. BioMaterials produces cellulose derivatives used in construction and industrial markets. Fine Chemicals focuses on pharmaceutical intermediates.

Costs remain under pressure. Foss-Jacobsen cited higher energy and logistics costs, along with chemical input prices. Lower wood costs provided a partial offset. Net currency effects were slightly positive.

The record production in BioMaterials stood out. The segment's output exceeded prior highs, driven by demand for cellulose-based products. Fine Chemicals continued its steady run from previous quarters.

Foss-Jacobsen described the quarter as "a solid result broadly in line with a strong second quarter last year" and said it was "supported by good operational performance."

CFO Per Bjarne Lyngstad is expected to provide more detail on revenue, margins and cash flow later in the call.