Back to News

Borealis delivers positive second quarter financial result despite COVID-19 and a low oil price environment

photo: Borealis CEO Alfred Stern

  • Lower Q2 profit versus 2019 mainly driven by the negative inventory value development due to the declining oil price, a decreased advantage from the use of light feedstock versus naphtha, and the unplanned outage of the steam cracker in Sweden
  • Relatively stable polyolefins sales volumes
  • Ongoing resilience programme helps maintain solid financial position in face of uncertain global market outlook
  • Increased net profit expected for the second half of 2020

Key figures and ratios


Q2 2020Q2 2019YTD 2020YTD 2019
Net SalesEUR million1,5292,1373,4924,280
Total Sales*EUR million1,8902,5834,1995,127
Net ProfitEUR million64328215528
Reduction / (increase) in net interest-bearing debtEUR million(279)279(395)(149)
Gearing%31%22%

* Net sales of Borealis plus pro-rata sales of at equity consolidated companies

Borealis announces a net profit of EUR 64 million for the second quarter of 2020, compared to EUR 328 million in the same quarter of 2019. The deterioration in profit compared to the second quarter of 2019 was mainly driven by the negative inventory value development due to the declining oil price, a decreased advantage from the use of light feedstock versus naphtha, and the unplanned outage of the steam cracker in Sweden. The sales volume in the Polyolefins business remained relatively stable, even during the pandemic, and the contribution from the Fertilizer business was at the level as in the same period in 2019. However, Borouge recorded higher sales volumes year-on-year, but weaker polyolefin prices in Asia impacted the earnings negatively.

Outlook

“The European polyolefins industry environment has been impacted by COVID-19 and the deterioration of the oil price since the end of the first quarter of 2020. However, the crisis has demonstrated how important our products are for sustainable living during a pandemic. Certain segments of our diversified application portfolio are performing well: Healthcare, parts of Consumer Packaging, and Fertilizers, but our Automotive business has not been spared the challenges experienced by many players in this industry,” comments Alfred Stern, Borealis CEO.
“The resilience programme we launched with focus on reduction of cost and investments is helping to maintain positive results and strong cash flow even during the COVID-19 crisis. For the second half of the year, we expect net profit to increase again compared to the first half of 2020. Borealis is in a good position to successfully weather this challenging period and remain a strong partner for our customers and the value chain.”

END

Media contact:

Virginia Mesicek
Senior Manager, External Communications
tel.: +43 1 22 400 772 (Vienna, Austria)
e-mail: virginia.mesicek@borealisgroup.com

photo: Borealis CEO Alfred Stern

Downloads
photo: Borealis CEO Alfred Stern photo: © Borealis
Media Contact
Group Media desk
Virginia Wieser, Lena Lehner
+43 1 22 400 899 (Vienna, Austria)
media@borealisgroup.com

Latest News

News – 30/05/2023

Supporting this once-in-a-generation opportunity to tackle plastic pollution

Read more

Media Release – 23/05/2023

Borealis and IINO Lines sign long-term charter contract for the Oceanus Aurora, a custom-built state of art LPG vessel

Read more

Media Release – 09/05/2023

Borealis showcases a new PP monomaterial pouch that is fully compatible for mechanical recycling of polypropylene at PRSE 2023

Read more

Media Release – 03/05/2023

Borealis launches Stelora™, a new class of engineering polymer that pushes the boundaries in performance and sustainability

Read more

Media Release – 02/05/2023

Borealis launches portfolio of circular plastomers and elastomers based on renewable feedstock

Read more

News – 28/04/2023

Re-tendering process for construction works in Kallo concluded

Read more

Media Release – 26/04/2023

Daniel Turnheim appointed Borealis CFO as of 1 June 2023, succeeding Mark Tonkens

Read more

Media Release – 18/04/2023

Borealis Bornewables™ polymers for personal hygiene fabrics help PFNonwovens Group accelerate its journey towards climate neutrality

Read more

Media Release – 13/04/2023

Borealis and Axpo sign their second long-term PPA within six months

Read more