Products
Downloads
Locations / Sites
Contacts
Download list
Back to News

Borealis continues to invest in the future

Key figures and ratios

(Quarter ending March 31, 2006)

Q1 

2006

Q1 

2005

Q4 

2005

Q1-4 

2005

Sales revenueEUR Million1,3321,1441,2644,814
Operating profit / (loss)EUR Million3611045236
Net profit / (loss) after taxEUR Million318452226
Reduction / (increase) in
net interest-bearing debt
EUR Million(79)(89)(29)(110)
Gearing%49%44%44%44%
ROCE after tax%17%12%

Borealis today announced the financial results of the first quarter, reporting an operating profit of EUR 36 million. The result was adversely impacted by provisions related to the recently announced decision to close a 110,000 tonnes high density polyethylene unit in Norway, consistent with Borealis' strategic direction and further improving overall competitiveness. The results were also affected by an additional insurance premium surcharge arising from heavy losses suffered by the insurance industry.

Strengthening innovation capability

Borealis recently announced its decision to develop the Innovation Centre in Linz, Austria into the centre of its international research activities. This will include significantly increasing the number of employees at the Centre and investing EUR 25-30 million in facilities over the next five years.

The decision is part of a broader agreement with the government of Upper Austria to invest around EUR 19 million by 2011 in strengthening Upper Austria as a plastics industry research hub. In close cooperation with Johannes Kepler University and Wels Advanced Technical College, this commitment will lead to enhanced educational activities and general facilities.

An additional investment of EUR 6-7 million in 2006 by Borealis was announced for improvements at our Innovation Centre in Finland. Plans were also revealed regarding the creation of an Innovation Centre in Abu Dhabi as part of the continued growth and success of Borouge, our joint venture with the Abu Dhabi National Oil Company (ADNOC).

Net interest-bearing debt increased EUR 79 million during the quarter influenced by higher working capital values resulting from higher prices and sales volumes as well as a EUR 45 million dividend payment.

Commenting on the performance, Chief Executive John Taylor said:

"In a quarter characterised by further rises in feedstock and energy prices combined with volatile demand patterns, we successfully commercialised the capacity expansions completed last year strengthening our overall European market position. In this context, we continue striving to increase our plastics prices to maintain profitability."

END

Media Contact
Virginia Mesicek
External Communications Manager

Latest News

Media Release – 23/03/2019

Borealis and ADNOC sign Memorandum of Understanding to explore strategic opportunities in the polyolefin industry

Read more

News – 20/03/2019

Borealis is assessing the Helsinki Administrative Court decisions issued on 19 March 2019

Read more

News – 19/03/2019

Borealis wins the 2019 Foreign Investment of the Year Trophy

Read more

News – 19/03/2019

Best polymer producers for Europe awards

Read more

News – 14/03/2019

Solar energy for Myanmar hospital thanks to Borealis Social Fund and Quentys™

Read more

Media Release – 12/03/2019

Borealis Quentys™ grades provide a boost to solar racing team

Read more

Media Release – 07/03/2019

Borealis awards Engineering Services (EPCM) contract to Maire Tecnimont Group for new world-scale propane dehydrogenation plant in Belgium

Read more

News – 05/03/2019

Combined Annual Report 2018 out now

Read more

News – 05/03/2019

Interview with Borealis CEO Alfred Stern and CFO Mark Tonkens

Read more