BRG Borregaard

Borregaard ASA: Production at LignoTech South Africa temporarily stopped

Borregaard ASA: Production at LignoTech South Africa temporarily stopped

Due to coronavirus related production curtailment of the calcium line at Sappi’s Saiccor dissolving pulp mill the supply of lignin raw material to LignoTech South Africa has been interrupted. As a consequence, lignin production has been stopped until raw material supply is resumed.

Sarpsborg, 2 April 2020

Contact:

Jørn Syvertsen, Director Investor Relations,

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

EN
02/04/2020

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Niclas Gehin
  • Niclas Gehin

Borregaard (Buy, TP: NOK230.00) - Specialisation provides resilience

We forecast Q1 EBITDA of NOK471m, reflecting muted growth in all segments except BioMaterials, where we see support from an 11% YOY increase in sales prices. The recent appreciation of the NOK has weighed on earnings estimates, along with softer end-markets, thus we have lowered our 2026–2027e EPS by 3%. We reiterate our BUY but have reduced our target price to NOK230 (240).

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