Borealis delivers solid result in the first quarter of 2015
- Borealis announces a net profit of EUR 137 million in the first quarter of 2015 compared to EUR 102 million in the first quarter of 2014
- Continuing the successful start-up of Borouge 3 mega project
- Improved operations of fertilizer plants
|Key figures and ratios||Q1 |
|Net Sales||EUR Million||1,988||2,256||1,980||8,330|
|Net Profit||EUR Million||137||102||141||571|
|Reduction / (increase) in|
net interest-bearing debt
Borealis, a leading provider of innovative solutions in the fields of polyolefins and base chemicals announces a net profit of EUR 137 million for the first quarter of 2015, compared to EUR 102 million in the same quarter of 2014. The improved result reflects improvements in all three profit centers of Borealis despite the lower price environment which led to substantial negative inventory effects in Q1 2015, especially for polyolefins.
In the first quarter net debt reduced by EUR 132 million largely due to lower working capital needs driven by the lower price environment for polyolefins. Borealis' financial position remains strong with financial gearing of 34% at the end of the first quarter.
Borouge 3 start-up
Borouge, Borealis’ joint venture with the Abu Dhabi National Oil Company in Abu Dhabi, UAE, continues the successful start-up of the mega project Borouge 3. By the end of 2014, the cracker as well as three out of five polyolefin plants had started up. In the first quarter of 2015 Borouge continued this process with the start-up of its high pressure polyethylene plant. The inauguration of new warehouses in Tianjin, China and Jurong Island in Singapore as well as the opening of the Borouge 3 container terminal show that Borouge is now “in gear” to take on the volumes of Borouge 3, which are increasing every month.
Borouge 3 will deliver an additional 2.5 million tonnes of capacity when fully ramped up, bringing the total Borouge capacity to 4.5 million tonnes, thus making Borouge the biggest integrated polyolefins complex in the world. Borealis and Borouge will then have approximately 8 million tonnes of polyolefin capacity.
Borealis Chimie fertilizer plants show improved operability
Following the turnarounds in the second half of 2014 and the ongoing transformation programme for Borealis Chimie, the operability of the ammonia and fertilizer plants has further improved in the first quarter of 2015. The scheduled turnarounds were safely undertaken to perform needed maintenance and repair works to improve the operability of the plants. After some difficult first months following the turnarounds, progress is being made at both locations towards reaching the full potential of the plants. While there is still more work to be done to reach full plant capacity, Borealis is confident that the turnarounds as well as the transformation programme has moved Borealis Chimie forward toward the ultimate goal of safe and reliable operations.
“The solid result in the first quarter was realised in a challenging price environment and is testament to the robustness of our European base,” says Mark Garrett, Borealis Chief Executive. “Despite the improved result, operability was not where we want to see it in the first quarter and the focus remains on ensuring good operability and safety at all our European sites as well as in regards to the start-up of the remaining plants of the Borouge 3 project. We expect 2015 to be a challenging year, but are pleased to see that the work to be a resilient company is supporting our bottom line in volatile times”.
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