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 pierre.bertrand@wsj.com

 

(END) Dow Jones Newswires

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

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