Outlook for 2023
Kemira upgraded its 2023 outlook for operative EBITDA on October 10, 2023.
Kemira’s end-markets have developed in line with expectations while profitability development has been better than expected following successful variable cost management.
Kemira now expects the operative EBITDA to be between EUR 620 and 680 million in 2023 (2022: EUR 571.6 million).Kemira’s outlook for revenue is unchanged. The assumptions behind Kemira’s outlook also remain unchanged.
Kemira’s upgraded outlookfor 2023
Revenue:
Kemira’s revenue is expected to be between EUR 3,200 million and EUR 3,700 million in 2023 (2022: EUR 3,569.6 million).
Operative EBITDA:
Kemira’s operative EBITDA is expected to be between EUR 620 and EUR 680 million in 2023 (2022: EUR 571.6 million).
Assumptions behind outlook (unchanged)
Kemira’s end-market demand (in volumes) is expected to decline. Demand is expected to be resilient in water treatment, while demand in the pulp and paper market is expected to be weak following economic slowdown and continued destocking in the customer value chain. Demand in the oil & gas market is expected to grow. Variable costs overall are expected to decline, while electricity prices are expected to remain above long-term average in Europe. Market prices for caustic soda are expected to moderate during 2023. The outlook assumes no major disruptions to Kemira’s manufacturing operations, supply chain, or Kemira’s energy-generating assets in Finland. Foreign exchange rates are expected to remain at approximately current levels. The outlook is based on Kemira’s current portfolio, including the Oil & Gas business.
Kemira’s financial targets | |
---|---|
Revenue | Above-the-market revenue growth |
Operative EBITDA margin | 15-18% |
Gearing level | below 75% |
Kemira’s previous outlook for 2023 (published July 18, 2023)
Revenue
Kemira’s revenue is expected to be between EUR 3,200 and EUR 3,700 million in 2023 (2022: EUR 3,569.6 million).
Operative EBITDA:
Kemira’s operative EBITDA is expected to be between EUR 550 and EUR 650 million in 2023 (2022: EUR 571.6 million).
Assumptions behind outlook (specified on July 18)
Kemira’s end-market demand (in volumes) is expected to decline. Demand is expected to be resilient in water treatment, while demand in the pulp and paper market is expected to be weak following economic slowdown and continued destocking in the customer value chain. Demand in the oil & gas market is expected to grow. Variable costs overall are expected to decline, while electricity prices are expected to remain above long-term average in Europe. Market prices for caustic soda are expected to moderate during 2023. The outlook assumes no major disruptions to Kemira’s manufacturing operations, supply chain, or Kemira’s energy-generating assets in Finland. Foreign exchange rates are expected to remain at approximately current levels. The outlook is based on Kemira’s current portfolio, including the Oil & Gas business.