Borgestad ASA annual report 2023

Borgestad

Change in the interest rate level in percentage points

Ensure compliance with current and future laws and regulations:

Borgestad must  ensure compliance as requirements come into force. In line with the coming European directives,  Borgestad will implement  sustainability  in the company's strategies and goals.

Earth globe: Africa and Europe with solid fill

Understand and acknowledge where Borgestad has an impact: 

 understanding of the company's actual and potential impacts on its surroundings, both positive and negative. The company operates in an industry that is emissions-intensive, has a risk of accidents and injuries, and has a global supply chain. This must be reflected in the company’s strategies and values.

Handle future financial risk and take advantage of commercial opportunities:

Sustainability may pose a risk to the refractory industry in the long-term. Borgestad must identify and assess significant financial risks and opportunities and determine how these should be managed to minimise risk and maximise opportunities. This requires thorough strategic planning.

Create a common direction for the company and subsidiaries: 

Borgestad is in the early stage of defining how it will deal with material sustainability issues. The aim of this work is to ensure that the company and its subsidiaries make good strategic decisions, directing effort and investments where they are needed and have the highest impact.

Borgestad Group increased revenue and other income with 22.5 percentage in 2023, to NOK 1 141.4 million. 

How the matter was addressed in the audit

The Group’s investment property Agora Bytom in Poland has a booked value of 701 million kroner as of 31.12.2023. The investment property is recognized at cost. The investment property has been tested for impairment in 2023 and the recoverable amount has been determined by the management with assistance from external valuation specialists. The investment property has been impaired with 94 million kroner, and it is referred to note 9 in the Annual Report.

The determination of the recoverable amount is based on key assumptions such as discount rate, future tenant income and vacancy rate. These are assumptions where management exercise judgment and which possess estimation uncertainty and combined with the investment property’s relative substantial share of the Group’s total assets, this has been concluded to be a key audit matter.

•Assessed the design & implementation of relevant controls related to management process for identifying impairment indicators, as well as the determination of the recoverable amount of the investment property.

•Assessed the methodological approach to determine the recoverable amount in accordance with the requirements set out in IAS 36 – Impairment of assets.

•Assessed competence and objectivity of external valuation specialists.

•Used internal specialist to test the accuracy of the methods applied to determine the recoverable amount.

•Reviewed and challenged the reasonableness of management’s assumptions related to tenant income and vacancy rate by comparing historical tenant income and vacancy rate.

•Used internal specialist to assess the applied discount rate.

•Assessed whether the disclosure requirements in the annual report fulfil the disclosure requirements in IAS 40 – Investment Property and IAS 36 – Impairment of assets.

Cashflow from operations improved by NOK 217.5 million in 2023, from negative NOK 50.6  million in 2022 to positive NOK 166.9 million in 2023. Significantly improved capital efficiency in Höganäs Borgestad during 2023, net working capital reduction of NOK 28.3 million.

New equity of NOK 296.7 million, deducted for transaction costs.  

Net interest-bearing debt reduced from NOK 689 million at 31.12.22 to NOK 307 million at 31.12.23.

Alternative performance measures (APMs) are described in the appendices 

Et bilde som inneholder Menneskeansikt, person, klær, skjorte

Automatisk generert beskrivelse

Rødland was elected chairman in 2023. Rødland holds an MBA and Postgraduate Studies in Finance at the Norwegian School of Economics (NHH) and UCLA.

Frode Martinussen was employed as a new CEO in Höganäs Borgestad and the strategy for Höganäs Borgestad was updated. 

Røland has 30 years' experience in shipping, oil and gas service, finance and investment management. He has extensive experience as an analyst and in corporate finance from investment banking, private office and private equity. Rødland also has considerable experience as a board member and chairman of several Norwegian public and private companies, as well as international companies. As of today, he is chairman of Prosafe SE and ABL-Group ASA. Rødland has previously been a board member of Spectrum ASA (merged into TGS ASA) for more than ten years, of which seven years as chairman. He was also chairman of the board of Seadrill Ltd.

Rødland controls 60,000,000 shares corresponding to 4.28 percent in Borgestad ASA.

Et bilde som inneholder Menneskeansikt, klær, person, smil

Automatisk generert beskrivelse

Kjølås was elected board member in 2023. Kjølås holds, among other things, a Master of Economics and Business Administration from the Norwegian School of Economics (NHH), and Executive Management Program, Strategic Management and Innovation, INSEAD, Paris, France.

Kjølås is an experienced chair and board member with wide sector experience across listed, private, family owned and private equity firms, having served in various leadership roles throughout her career, including COO ,CEO and CFO of the Grieg Group’s holding company, Grieg Maturitas AS,  Kjølås has been CEO in Kavli Norway and CFO in Kavli Holding, served on the board in Grieg Seafood ASA, Cermaq ASA, PGS ASA, DOF ASA, and chaired Magseis Fairfield ASA, Keolis Norway and Flytoget AS.  Currently on the Board of DeepOcean Group Holding AS, Alginor ASA and Western Norway University.

Kjølås controls 4,000,000 shares corresponding to 0.29 percent in Borgestad ASA.

Et bilde som inneholder person, mann, dress, posere

Automatisk generert beskrivelse


Møller has been a board member since 2009, and was Chairman in the period 2021 - 2023. He has a degree in law from the University of Oslo and a Master in Law from the University of Cambridge. Møller has a background as a lawyer at BAHR and head of Schibsted's M&A department. Møller is currently a Partner and Head of the technology department at BAHR. He has extensive experience with board work.

Møller owns/controls 48,719,692 shares corresponding to 3.47 percent in Borgestad ASA. 

Et bilde som inneholder person, mann, dress, vegg

Automatisk generert beskrivelse


Sivertsen was elected as a board member in 2022. He is a qualified auditor from the University of Agder. He is chairman and board member of a number of boards through active ownership under the Kontrari umbrella. Sivertsen currently works as managing director of Kontrari AS, a holding company with significant investments in several listed and unlisted companies. Sivertsen has previously been employed as finance director at B&G Group and as an authorized auditor at Iversen Revisjon AS.

Sivertsen controls 380,513,105 shares corresponding to 27.13 percent in Borgestad ASA.

Et bilde som inneholder person, smilende

Automatisk generert beskrivelse


Steen was elected as a board member in 2022. She has a master’s degree in shipping and finance from Cass Business School in London and a bachelor's degree from BI Business School. Over several years, she has held various positions in DNB Bank's major customer department within shipping and offshore and DNB Asset Management.  Steen currently works as principal/CFO in Ses AS, a holding company with significant investments in several listed and unlisted companies. 

Steen represents 209,408,501 shares corresponding to 14.93 percent in Borgestad ASA.

Et bilde som inneholder person, dress, klær, mann

Automatisk generert beskrivelse


Feen Larsen has held the position as CEO since 2019. He was employed in 2013 and from 2015 to 2019 was CFO in the Group. Feen Larsen has a master's degree in accounting and auditing at Bl Business School and is a state authorized auditor. He has experience from auditing and consulting from several listed companies and other international Groups.

Feen Larsen owns 5,529,605 shares corresponding to 0.39 percent in Borgestad ASA.

On 27th October, the company announced a conditional sale and leaseback agreement with 

Bjuv municipality in Sweden, with a net estimated cash effect of SEK 141.3 million. The transaction is estimated to be completed in 2024 and will further decrease the net interest-bearing debt to NOK 166 million.

Agora Bytom refinanced with new maturity date 31 December 2028.

(NOK 1 000)	2023	2022	2021	2020
Income statement
Revenue and other income	1 141 417	931 726	946 895	862 388
EBITDA	127 478	52 293	76 625	29 478
Depreciation	31 750	31 799	33 305	39 887
Impairment of non-current assets	94 298	91 343	-	106 029
Operating profit	1 430	-70 848	43 319	-116 439
Financial items excl. foreign currency	-49 246	-46 633	-81 152	-45 799
Foreign currency gain/(loss)	10 534	-6 839	-2 142	5 984
Profit before taxes	-37 283	-124 320	-39 975	-162 238
Profit/(loss) for the year	-63 592	-126 109	-23 598	-175 006
Balance
Non-current assets	942 626	1 011 126	1 074 570	1 165 199
Current assets	463 752	455 432	357 058	368 954
Total assets	1 406 378	1 466 558	1 431 627	1 534 153
Total equity	755 842	507 873	339 297	383 758
Non-current liabilities	377 552	613 967	539 591	765 731
Current liabilities	272 984	344 718	552 739	384 665
Total equity and liabilities	1 406 378	1 466 558	1 431 627	1 534 153
Profit
Return on equity	-4,2 %	-31,0 %	-11,6 %	-34,8 %
Return on total capital	1,0 %	-5,3 %	0,9 %	-6,9 %
Liquidity
Cash flow	61 629	42 722	-13 594	-41 697
Liquidity ratio	170 %	132 %	65 %	96 %
Financial figures
Share capital	350 621	152 491	12 725	127 248
Average no of shares	339 983	112 144	12 717	12 715
Equity ratio	53,7 %	34,6 %	23,7 %	25,0 %
Price/Book	0,6	0,4	0,3	0,5
Bank deposits and financial investments	152 688	91 059	48 337	61 931
Interest-bearing debt	459 976	779 816	899 600	941 159
Net interest-bearing debt	307 289	688 757	851 263	879 228
Key figures per share
Profit per share	-0,23	-1,11	-1,89	-13,02
Cash per share	0,18	0,38	-1,07	-3,28
Dividend	0,00	0,00	0,00	0,00

Borgestad ASA annual report 2023

Highlights and key figures

Highlights

Key figures