Borregaard

Borregaard: EBITA adj. NOK 164 million (NOK 243 million) in 2nd quarter

Borregaard's operating revenues were NOK 1,199 million (NOK 1,256 million)¹ in

the 2(nd) quarter of 2018. EBITA adj.² was NOK 164 million (NOK 243 million).

Costs increased by approximately NOK 40 million due to higher wood and caustic

soda prices and ramp-up costs for the new Florida plant. The net currency impact

was slightly positive.

In Performance Chemicals, higher sales of Miscellaneous and Specialities

products led to a 3% overall increase in volume. EBITA adj.² declined, mainly

due to strong price competition in regional construction markets and increased

costs. For Speciality Cellulose, higher wood and caustic soda prices and lower

sales of acetate cellulose were the main reasons for the lower EBITA adj.².

Other Businesses had a slightly weaker result where the effect of higher sales

prices in Ingredients was off-set by low deliveries in Fine Chemicals.

Profit before tax was NOK 159 million (NOK 241 million). Earnings per share were

NOK 1.32 (NOK 1.81).

- We are pleased with the on-going efforts to diversify the lignin portfolio in

response to challenging construction markets, and the successful start-up of the

Florida plant, says President and CEO Per A. Sørlie.

Contacts:

Director Investor Relations, Jørn Syvertsen, +47 958 36 335

SVP Organisation and Public Affairs, Dag Arthur Aasbø, +47 918 34 108

1. Figures in parentheses are for the corresponding period in the preceding year

2. Operating profit before amortisation and other income and expenses

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

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