Borealis delivers strong financial results despite softening market environment

Borealis has announced a net profit of €138 million for the fourth quarter of 2019, compared to €94 million in the same quarter of 2018.

While the 2018 result was impacted by a one-off impairment charge of €92 million, the result in the fourth quarter of 2019 was driven by a soft polyolefins market in Asia, lowering the contribution from Borouge.

For the full year 2019, the company recorded a net profit of €872 million, compared to €906 million in 2018.

The 2019 result was negatively impacted by a lower polyolefins price environment is Asia, which affected the contribution from Borouge.

However, the negative impact was limited due to healthy integrated polyolefins margins in Europe together with improved results in the Fertiliser, Melamine, and Technical Nitrogen Products segment.

In the fourth quarter, net debt rose by €212 million, and over the full year net debt increased by €241 million, driven largely by the high investment level related to growth projects and the payment of a €525 million dividend for 2018 and a €300 million interim dividend for 2019 to Borealis shareholders.

Alfred Stern, CEO of Borealis, said: “In 2019, Borealis delivered a strong financial result, only slightly below 2018, and despite a softened economic environment.”

“Due to the weaker global economy and heightened concerns with regard to ongoing geopolitical uncertainties, we expect market conditions to remain challenging throughout 2020.”

“Nevertheless we anticipate that the year will be a solid one. In the first quarter of 2020, Borealis will roll out a new corporate strategy which builds on core Borealis values and capabilities in order to achieve sustainable growth moving forward.”

“The essential dimensions of the new strategy include the transformation to a circular economy and the creation of an even more customer-centric organisation that adds value of a global scale.”

“The successful implementation of the strategy will strengthen Borealis’ leading position in the industry.”