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 revenue | EUR Million | 1,696 | 1,481 | 1,610 | 6,350 |
| Operating profit / (loss) | EUR Million | 137 | 127 | 28 | 451 |
| Net profit / (loss) after tax | EUR Million | 130 | 113 | 58 | 533 |
| Reduction / (increase) in net interest-bearing debt | EUR Million | (194) | 61 | 64 | (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."
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For further information, please contact:
Kerstin Meckler, Borealis Group Media Relations Manager
Tel. +43 122 400 389,
Email: kerstin.meckler@borealisgroup.com