Kemira Oyj: Inside information: Kemira upgrades its 2023 outlook for operative EBITDA

Inside information: Kemira upgrades its 2023 outlook for operative EBITDA
Kemira upgrades its 2023 outlook for operative EBITDA. Kemira's end-markets have developed according to expectations, while variable costs, including energy, have declined faster than expected.

Kemira now expects the full year 2023 operative EBITDA to be between EUR 550 and EUR 650 million in 2023. Kemira's outlook for revenue is unchanged.

The assumptions behind Kemira's outlook have also been specified. On March 29, 2023 Kemira announced a strategic review of its Oil & Gas business. The upgraded outlook is based on Kemira's current portfolio, including the Oil & Gas business.

Kemira's upgraded outlookfor 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)

We expect demand in Kemira's end-markets to be resilient despite the significant uncertainty related to the global macroeconomic environment, energy prices, and the development of the war in Ukraine. Overall, Kemira's end-market demand (in volumes) is expected to decline somewhat. 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 previous outlook for 2023 (published February 10, 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 500 and EUR 600 million in 2023 (2022: EUR 571.6 million).

Previous assumptions behind outlook

We expect demand in Kemira's end-markets to be resilient despite the significant uncertainty related to the global macroeconomic environment, energy prices, and the development of the war in Ukraine. Overall, Kemira's end-market demand (in volumes) is expected to decline somewhat. Demand in the oil & gas market is expected to grow. Variable costs are expected to decline but with variation by raw material. Electricity prices are expected to remain above long-term average in Europe, but with uncertainty related to the level of pricing. Market prices for caustic soda are expected to moderate during 2023 from the current very high level. 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.

Kemira observes a silent period prior to the release of its financial results. Kemira is now in its silent period, which will continue until the publication of Kemira's Q1 2023 results on Tuesday, April 25, 2023.

For more information, please contact:
Kemira Oyj

Mikko Pohjala, Vice President, Investor Relations
Tel. +35840838 0709

Kemira is a global leader in sustainable chemical solutions for water-intensive industries. We provide the best-suited products and services to improve our customers' product quality, process, and resource efficiency. Our focus is on pulp & paper, water treatment, and energy sectors. In 2022, Kemira had annual revenue of around EUR 3.6 billion and around 5,000 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.
www.kemira.com