Borealis reports record net profit for 2015
Austria-based company generated 7.7 billion euros in sales.
Austria-based polyolefins and chemicals maker Borealis recorded a record net profit in 2015.
The company generated 7.7 billion euros in sales and notched a record 988 million euros in net profit in 2015, compared to 571 million euros in 2014.
In a statement, the company said the improved result over 2015 was driven by overall stronger margins in the polyolefins business and a higher contribution from the base chemicals business.
Moreover, Borealis’ joint venture with the Abu Dhabi National Oil Company in Abu Dhabi, UAE, also played a role in achieving these results, as the start-up of its mega project “Borouge 3” continued without trouble throughout 2015.
Once fully ramped up, Borouge 3 will deliver an additional 2.5 million metric tons of capacity.
“2015 saw historically high integrated polyolefin industry margins,” said Borealis CEO Mark Garrett. “Despite lower feedstock costs, polyolefin prices did not retreat to the same extent driven by a tight market as a result of solid demand combined with a supply shortfall, in particular resulting from unplanned production stops.”
Garrett also noted that imports of polyolefins into Europe have been uncompetitive following the weakening of the Euro. “We expect this situation to ease in 2016, but we believe the integrated polyolefin industry margin will be solid,” he said.
“Overall, Borealis expects to see a solid, albeit lower profitability in 2016 compared to 2015,” Garrett added.