Products
Downloads
Locations / Sites
Contacts
Download list
Back to News

Borealis delivers strong result in the second quarter of 2015

  • Borealis announces a net profit of EUR 351 million in the second quarter of 2015 compared to EUR 143 million in the second quarter of 2014
  • Cracker and all five polyolefin plants of Borouge 3 are running as planned
  • Investing EUR 160 million in Stenungsund, Sweden 
Key figures and ratiosQ2 

2015

Q2 

2014

H1 

2015

H1 

2014

Net SalesEUR million2,0392,0914,0274,347
Net ProfitEUR million351143489245
Reduction / (increase) in
net interest-bearing debt
EUR million69(58)201(169)
Gearing%31%48%

Borealis, a leading provider of innovative solutions in the fields of polyolefins and base chemicals announces a net profit of EUR 351 million for the second quarter of 2015, compared to EUR 143 million in the same quarter of 2014. The strong result reflects improvements in all three profit centers of Borealis, particularly the polyolefins segment.

In the second quarter net debt reduced by EUR 69 million due to the solid business performance. Borealis' financial position strengthened further with financial gearing of 31% at the end of the second quarter.

In the second quarter of 2015, integrated polyolefin producers saw strong industry margins. Despite lower feedstock costs, polyolefin prices did not retreat driven by a tight market as a result of solid demand combined with a supply shortfall. In addition, imports of polyolefins into Europe have been uncompetitive following the weakening of the Euro. However, in the first quarter of 2015, the falling monomer prices did cause large negative inventory effects for polyolefin producers.

Borouge 3  

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. In April, the low density polyethylene plant (LD1) had a smooth start-up. With this start-up, all five polyolefin plants are now running as planned. The only remaining unit to be started-up is the cross-linked polyethylene (XLPE) plant which is scheduled towards the end of 2015 and will complete the start-up of the Borouge 3 mega project.

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.

Investing in Europe

In July, Borealis announced a EUR 160 million investment in its production location in Stenungsund, Sweden. The investment entails the upgrade and revamp of four cracker furnaces to the highest currently available standards in process safety and energy efficiency. The Stenungsund programme is scheduled to begin in late 2016 and be completed by 2020.

Outlook

“The record result in the second quarter came on the back of a very favourable polyolefin market,” says Mark Garrett, Borealis Chief Executive. “While pleased with the result, we faced a number of production interruptions in the second quarter, causing issues in the supply chain. For this reason operational excellence remains a key focus for the company. Despite an overall lower price environment compared to 2014, 2015 presents industry margins for the polyolefins segment not seen since 2007. Borealis is well positioned to take advantage of this opportunity as it has upgraded its European asset base and grown through the Borouge expansions over the past several years.”

END

For further information please contact:

Kerstin Meckler
Director Communications
Tel. +43 (0)1 22 400 389 (Vienna, Austria)
e-mail: kerstin.meckler@borealisgroup.com

Downloads
Borealis delivers strong result in the second quarter of 2015 English, Dutch, Finnish, French, German, Swedish
Media Contact
Patrick Laureys
Senior External Communications Manager

Related News

News – 16/10/2018

Update on Project STOP: Change is possible and the momentum continues

Read more

Media Release – 09/10/2018

Borealis and Borouge introduce Borealis Bormed™ PL8830-PH, the first controlled plastomers solution for the healthcare industry

Read more

Media Release – 06/10/2018

Borealis to build new, world-scale 750,000 tonne/year propane dehydrogenation (PDH) plant in Belgium

Read more

News – 02/10/2018

United States: Bayport Polymers to Double Polyethylene Capacity

Read more

Media Release – 28/09/2018

Borealis Executive Vice President Base Chemicals Markku Korvenranta to step down

Read more

Media Release – 26/09/2018

Borealis and the ZOOM Children’s Museum to encourage critical discussion through the new “EARTH & SOIL” interactive exhibition

Read more

Media Release – 26/09/2018

Borealis appoints Rainer Höfling as CEO of its dedicated Fertilizer & Melamine business

Read more

Media Release – 25/09/2018

Borealis and Bockatech partner to develop foam injection moulding solutions for reusable and recyclable packaging

Read more

Media Release – 17/09/2018

Borealis Daplen™ grades with post-consumer recycled content to help develop Volvo Cars demonstrator vehicle

Read more