Polyolefin and chemicals supplier Borealis had a very good year in 2014.
The Vienna, Austria-based company reported a net profit of 571 million euros, compared to 423 million euros in 2013.
Borealis attributed the improvement to overall stronger margins in the olefins and polyolefins business and an improved contribution from Borouge following the start-up of the Borouge 3 project. The Borouge 3 project is Borealis’ joint venture with the Abu Dhabi National Oil Company in Abu Dhabi, UAE. “After the successful start-up of the cracker in June, three out of five polyolefin plants started up in the period until year end,” Borealis said in a statement. “Borouge 3 will deliver an additional 2.5 million tonnes of capacity when fully ramped up, bringing the total Borouge capacity to 4.5 million tonnes, thus making Borouge the biggest integrated polyolefins complex in the world. Borealis and Borouge will then have approximately 8 million tonnes of polyolefin capacity.”
In August 2014, Borealis also grew its polyolefin business with the acquisition of all the outstanding shares in DuPont Holding Netherland B.V.’s shares of Speciality Polymers Antwerp N.V., located in Zwijndrecht, Belgium.
“In 2014 we have been working to capture strategic opportunities to remain robust in our traditional European base, giving the company multiple sources of profit while at the same time building Borouge,” said Mark Garrett, Borealis CEO.
Looking ahead, Garrett continued, the company forecasts slightly lower profitability in 2015 compared to 2014 due to the lower oil price environment. “However, a lower cost base will help improve the competitiveness of European producers,” Garrett said.