Sappi’s share price surged 10.9 percent on the JSE yesterday morning after the paper and packaging products group, said that its outlook for its fourth financial quarter to September 30, 2022, was better than initially thought.
In third quarter results on August 4, Sappi’s earnings guidance was: “Notwithstanding inflationary cost pressures, we anticipate another strong performance in the fourth quarter, with EBITDA (earnings before interest tax depreciation and amortisation) below the record levels achieved in the third quarter”.
However, the group said yesterday that during the fourth quarter, market conditions were stronger than expected, while European energy prices, principally gas, were lower than anticipated.
“Consequently, we now anticipated that the EBITDA excluding special items for the fourth quarter ended 30 September 2022 will be above the levels achieved in the third quarter ended June 2022.”
The full financial results are expected to be published on November 10.
BUSINESS REPORT