Borealis continues to deliver strong results in 2012 despite a volatile market environment
Borealis announced a net profit of EUR 100 million in the fourth quarter of 2012, compared to EUR 58 million in the same quarter of 2011. The company recorded a net profit of EUR 480 million in 2012, compared to EUR 507 million in 2011. The reduction in 2012 was largely driven by a weaker margin environment in Europe within the Polyolefins business. In 2012, net debt increased by EUR 403 million, due in part to the acquisition of the French fertilizer producer PEC-Rhin and other investments to position the company for future growth. Despite the increase in debt, Borealis’ financial position remains strong with a gearing of 43%.
“In 2012 our Fertilizer business as well as our joint venture Borouge significantly contributed to our profitability,” states Mark Garrett, Borealis Chief Executive. “However, 2012 showed that the polyolefins industry in Europe is still suffering from low growth and margins, and it is likely that this will not improve materially for some time. We will further optimise our European operations in order to be sustainably profitable to grow in these volatile markets.”
“Despite the difficult market environment, Borealis again delivered solid results in 2012,” says His Excellency, Khadem Al Qubaisi, Chairman of Borealis’ Supervisory Board and Managing Director of IPIC (Abu Dhabi based International Petroleum Investment Company). “I am confident that Borealis’ consistent winning strategy will support the company’s growth agenda also in 2013.”
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