Solvay Shares Pare Gains After Lift From New Guidance

By Pierre Bertrand

Solvay shares pared early gains Monday after an increase in 2022 guidance initially lifted shares.

At 0833 GMT, shares in the Belgian chemical company traded 0.9% higher at EUR 90.02, after gaining more than 4.5% after the company again lifted guidance for earnings before interest, taxes, depreciation and amortization.

It now sees full-year Ebitda growth of around 28%, compared to its guidance of 14% to 18%, which it raised in July. Monday's increase is the third upgrade to the metric this year.

The new full-year guidance takes into account the company's performance so far and that of fourth-quarter orders, which indicate some level of weakening, Solvay said.

Boosted by demand and pricing across the whole of the business, third-quarter net sales are expected around 3.6 billion euros ($3.55 billion) and underlying Ebitda around EUR900 million, Solvay said.

The forecast exceeds analysts' consensus which estimated third-quarter Ebitda at EUR764 million. The new guidance implies a full-year Ebitda result of EUR3.17 billion, exceeding analysts' estimates of EUR2.87 billion, Jefferies analysts said in a research note.

Write to Pierre Bertrand at [e-mail]

(END) Dow Jones Newswires

October 24, 2022 05:04 ET (09:04 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.