Borealis records a solid second quarter

Borealis has announced a net profit of €328 million (approximately £302 million) for the second quarter of 2019, compared to €293 million (approximately £267 million) in the same quarter of 2018.

The company says the solid result was supported by good integrated polyolefin margins in Europe and improved results in the Borealis fertilizer business, which offset a weaker polyolefins market in Asia.

On 7 June 2019, the Finnish and Austrian tax authorities reached an agreement on two cases regarding the taxation of Borealis Finnish subsidiaries Borealis Technology Oy and Borealis Polymers Oy. The dispute was resolved through a Mutual Agreement Procedure (MAP) between Finland and Austria.

Borealis welcomes that an agreement has been reached which finally eliminates double taxation. In the second quarter, driven by the business performance and a healthy contribution from Borouge, net debt was reduced by EUR 279 million.

According to Borealis its financial position remains strong, with a net gearing ratio of 22 per cent at the end of the second quarter of 2019.

“Borealis has achieved a respectable result for the second quarter, which translates into solid results for the first half year. While Borouge is facing a softer polyolefin market in Asia, the fertilizer business considerably improved in the first half of 2019,” said Borealis CEO Alfred Stern.

“For the second half of 2019, we expect pressure on integrated polyolefin margins in Europe, but remain confident that Fertilizers will continue on a positive trend.”