Kemira raises its 2023 outlook for operating EBITDA
By: ICN Bureau
Last updated : April 17, 2023 6:04 pm
Kemira's turnover is expected to be between 3,200 and 3,700 million euros in 2023 (2022: 3,569.6 million euros)
Kemira raises its 2023 outlook for operating EBITDA. Kemira's end market demand has developed as expected. Variable costs, including energy costs, have fallen more than expected.
Kemira now expects the operating EBITDA for 2023 to be between 550 and 650 million euros in 2023. Kemira's guidelines for turnover will remain unchanged.
The background assumptions of the views have also been specified. On 29 March 2023, Kemira announced that it would start a strategic assessment of its Oil & Gas business. Kemira's raised outlook is based on Kemira's current business structure, including the Oil & Gas business.
Kemira's raised outlook for 2023
Turnover: Kemira's turnover is expected to be between 3,200 and 3,700 million euros in 2023 (2022: 3,569.6 million euros).
Operating EBITDA: Kemira's operating EBITDA is expected to be between 550 and 650 million euros in 2023 (2022: 571.6 million euros).
Background assumptions of views (clarified)
We expect Kemira's end market demand to be resilient to concerns related to the global macroeconomic environment, energy prices and the development of the war in Ukraine. All in all, Kemira's end market demand (measured in sales volumes) is expected to decrease somewhat. Demand in the oil and gas market is expected to grow. Variable costs as a whole are expected to decrease. The price of electricity is expected to remain above the average in Europe for a long time. Lipe's market prices are expected to decrease during 2023. The outlook assumes that there are no significant disruptions in Kemira's production operations, supply chain or Kemira's indirectly owned energy production facilities in Finland. Exchange rates are expected to remain at approximately the current level. The outlook is based on Kemira's current business structure,
Kemira's previous outlook for 2023 (published on February 10, 2023)
Turnover: Kemira's turnover is expected to be between 3,200 and 3,700 million euros in 2023 (2022: 3,569.6 million euros).
Operating EBITDA: Kemira's operating EBITDA is expected to be between 500 and 600 million euros in 2023 (2022: 571.6 million euros)
Previous background assumptions of views
We expect Kemira's end market demand to be resilient to concerns related to the global macroeconomic environment, energy prices and the development of the war in Ukraine. All in all, Kemira's end market demand (measured in sales volumes) is expected to decrease somewhat. Demand in the oil and gas market is expected to grow. Variable costs are expected to decrease, but the situation varies by raw material. The price of electricity is expected to remain above the average in Europe for a long time, but there is uncertainty about the price level. The market prices of Lipe are expected to decrease during 2023 from the current very high level. The outlook assumes that there are no significant disruptions in Kemira's production operations, supply chain or Kemira's indirectly owned energy production plants in Finland.