Back to News

Borealis increases net profit in Q1 2008

  • Despite increasingly challenging market conditions, Borealis achieves EUR 130 million net profit for the first quarter, a 15% increase compared to first quarter of 2007
  • Plans announced during quarter for further expansion of asset footprint in Middle East
  • Asset investments in Europe for the wire and cable market progressing well
Key figures and ratios

(Quarter ending March 31, 2009)

Q1 

2008

Q1

2007

Q4 

2007

Q1-4 

2007

Sales revenueEUR Million1,6961,4811,6106,350
Operating profit / (loss)EUR Million13712728451
Net profit / (loss) after taxEUR Million13011358533
Reduction / (increase) in
net interest-bearing debt
EUR Million(194)6164(7)
Gearing%36%30%27%27%

Borealis, a leading provider of innovative, value creating plastics solutions, announces a net profit of EUR 130 million for the first quarter of 2008, a 15% increase over the same period last year. Net interest-bearing debt increased by EUR 194 million during the quarter, and the gearing ratio increased to 36%, up from 27% in the fourth quarter of 2007.

The first-quarter results were achieved by growth in the polyolefin target market segments of infrastructure, automotive and advanced packaging as well as positive contributions from the newly formed base chemicals business and from Borouge, Borealis' joint venture with the Abu Dhabi National Oil Company.

Announcements were made during the quarter on plans to expand assets in the Middle East. The first regards the joint signing of a memorandum of understanding by the International Petroleum Investment Company and Borealis along with the Abu Dhabi Investment Council for the creation of a new Chemicals Industrial City to be located in Abu Dhabi, the United Arab Emirates. The second was made regarding the initiation of a feasibility study for Borouge 3, a further expansion of Borouge, which would add approximately 2.5 million tonnes per year of polyolefin capacity by 2014.

In Sweden, construction of a 350,000 t/y low-density polyethylene plant, the company's largest European investment to date, is on track for completion in 2009 to supply the growing wire and cable market.

"We have achieved a solid financial performance in the first quarter," comments Chief Executive Mark Garrett. "Our steadfast dedication to innovation, operational competitiveness, commercial excellence and safety combined with a strong focus on our key market segments continue to drive sales growth and bring us good results. We are preparing to handle upcoming volatility in the market and will remain focused on our long-term growth strategy."

END

For further information, please contact:

Kerstin Meckler, Borealis Group Media Relations Manager
Tel. +43 122 400 389,
Email: kerstin.meckler@borealisgroup.com

Downloads
Borealis increases net profit in Q1 2008 English, Dutch, Finnish, German, Swedish
Media Contact
Virginia Wieser
Senior Manager, Corporate Communications, Brand & Reputation
+43 1 22 400 772
media@borealisgroup.com

Latest News

Media Release – 26/09/2022

Borealis and YILDIRIM signed a binding agreement for Yildirim to acquire Borealis’ shareholding in Rosier SA

Read more

Media Release – 20/09/2022

Borealis appoints Jonatas Melo as Vice President Performance Materials

Read more

Media Release – 15/09/2022

On presents the first ever shoe made from carbon emissions in partnership with LanzaTech, Borealis and Technip Energies

Read more

News – 18/08/2022

Borealis to retender the majority of contracts for PDH construction site in Kallo, Belgium, after termination of all contracts with IREM

Read more

Media Release – 10/08/2022

Borealis confirms intention to launch squeeze out offer for Rosier

Read more

News – 04/08/2022

Borealis suspends construction in Kallo after serious allegations against contractor and continues to support Belgian authorities in investigation

Read more

News – 01/08/2022

Borealis prolongs stand-still for its Propane Dehydrogenation (PDH) plant construction site in Kallo, Belgium

Read more

Media Release – 27/07/2022

Borealis suspends contract with IREM-Ponticelli and declares a three-day stand-still for its construction site in Kallo, Belgium

Read more

Media Release – 21/07/2022

Borealis announces the start-up of New Ethane Cracker at its Joint Venture Baystar in Port Arthur, Texas

Read more