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Borealis announces a net profit of EUR 1.1 billion for the year 2016, compared to EUR 988 million in 2015. The improved result was driven by overall stronger margins in the polyolefins business and an improved contribution from Borouge, following the successful completion of the Borouge 3 project. The contribution from Base Chemicals was lower compared to 2015 as a result of weak demand and low prices in the fertilizer business.
"2016 was a very strong year for Borealis of which all our people should be proud. Whilst we do not expect to repeat the 2016 result in 2017, we still expect 2017 to be a very solid year, with Borealis remaining in the top echelon of profitable companies", says Mark Garrett, Borealis Chief Executive. "During 2017 we expect significant capacities to start coming on stream in North America. North America will become a significant net exporter in the coming years and it would be naïve to think that this won't affect us; it's simply the nature of our cyclical business. Our challenge at Borealis is to invest intelligently in a counter cyclical manner as we did in Borouge 3. 2017 will also be more challenging for Borealis due to the intensive turn-around schedule, involving five locations."
"The most impressive achievement of 2016 is clearly our outstanding financial performance. For the first time in the history of the company, we've been able to cross the threshold of EUR 1 billion net profit. Back in 1994, I'm sure that many people who started the journey with Borealis would never have dreamt that one day, we would have a net profit in the 10-figure range. This shows just how far the company has come. Over the last ten years, profit has gone up four to five times. Product volume has quadrupled. Sales – if you incorporate our share of Borouge sales – have gone up two and a half times. This means that profit intensity has also increased dramatically. So to end 2016 with such a result has been a remarkable journey."
Mark Garrett, Borealis Chief Executive