MOSCOW (MRC) -- Borealis, a leading provider of innovative solutions in the fields of polyolefins and base chemicals, announces a net profit of EUR 141 million for the fourth quarter of 2014, compared to EUR 148 million in the same quarter of 2013, said the producer in its press release.
For the full year 2014 the company recorded a net profit of EUR 571 million, compared to EUR 423 million in 2013. The improved result over 2013 was driven by overall stronger margins in the olefins and polyolefins business and an improved contribution from Borouge following the startup of the Borouge 3 project. Within Base Chemicals the fertilizer business did not deliver as well as expected due to operational challenges at the newly acquired plants in France.
In the fourth quarter net debt reduced by EUR 255 million largely due to lower working capital needs driven by a lower price environment for polyolefins and by an inventory reduction following the completion of the site turnaround in Burghausen, Germany. In 2014, net debt increased by EUR 28 million. Borealis’ financial position remains strong with a gearing of 40%.
As MRC wrote before, Borouge, Borealis’ joint venture with the Abu Dhabi National Oil Company in Abu Dhabi, UAE, started the cracker in June, three out of five polyolefin plants started up in the period until year end. 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.
Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries. It generated EUR 8.3 billion in sales revenue in 2014.
MRC