Borregaard ASA: Initiation of share repurchase programme

Borregaard ASA: Initiation of share repurchase programme 15 November 2024: Borregaard ASA ("Borregaard", OSE ticker: BRG) Borregaard intends to repurchase up to 200,000 shares of its outstanding common stock. The shares will be used for employee incentive programmes. Borregaard’s Board of Directors was given authority by the shareholders at the Ordinary General Meeting held on 11 April 2024 to repurchase up to ten percent of the outstanding shares. According to the proxy, the highest price to be paid is NOK 400.00 per share. The repurchase of shares will be conducted in a period from 18th...

September: Pulp shipments -10% y-o-y

Borregaard (Buy, TP: NOK230.00) - High bioethanol sales drive beat

EBITDA was slightly above our forecast and consensus in Q3, fuelled by high shipments in Bioethanol. We have made only minor changes to our estimates (2025e EPS down 2%, while 2026e EPS is unchanged) on the back of the report. We continue to expect solid EPS growth in 2025–2026, driven by price rises to reflect increased wood costs, as well as FX tailwinds. We maintain our NOK230 target price and reiterate our BUY.

Edda Wind (Buy, TP: NOK30.00) - Well positioned

While EBITDA was broadly in line with expectations, the Q3 report gave early signs of improved operational reliability, which we believe will be key to narrowing the discount to underlying values (the stock is trading at 0.6x P/NAV). Recent contract awards (including a new 12+12-month contract announced with the results) have made the fleet fully booked until the 2025 summer season, and three of the four 2025 newbuild deliveries are now booked directly following yard delivery. We reiterate our BUY and NOK30 target price.

Valuation and market update

In this note, we show updated valuation and market statistics for the Offshore Drilling sector.

Petrobras FPSO delays may hit service volumes but lengthen cycle

Being the largest global consumer of deepwater oil services, Petrobras’ strategic plans tend to get investor attention. On the positive side, its latest 5-year plan sees 5% higher E&P spending than the previous one, and has a more stable phasing between the years, which is supportive for the cycle duration. However, several FPSOs are facing significant delays, which is on the downside for oil services, leading to delays for deepwater oilfield services (primarily drilling and subsea), likely resulting in lower ‘peak volumes’ and demand being spread over a longer period. The rig count is said to...