20 January 2017
Borealis, Austrian chemicals group, with 7.7 billion sales, has reported a 73% increase in annual net profits, despite net sales in 2015 falling 7.5%.
Borealis is owned by the International Petroleum Investment Company of Abu Dhabi (64%) and by OMV Aktiengesellschaft, an integrated, international oil and gas company (36%).
With headquarters in Vienna, Austria, Borealis currently employs around 6,500 and operates in over 120 countries. It generated EURO 7.7 billion in sales revenue and a net profit of EURO 988 million in 2015. The International Petroleum Investment Company (IPIC) of Abu Dhabi owns 64% of the company, with the remaining 36% belonging to OMV, an international, integrated oil and gas company based in Vienna.
Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC). Borealis and Borouge aim to proactively benefit society by taking on real societal challenges and offering real solutions. Both companies are committed to the principles of Responsible Care, an initiative to improve safety performance within the chemical industry, and contribute to solve the world's water and sanitation challenges through product innovation and their Water for the World™ programme.
The group posted net profits of € 988m (£763m) on revenues of € 7.7bn (£5.6bn), with chief executive Mark Garrett pointing to solid demand for polyolefins in a tight market. “Last year was a very good year financially for Borealis, where we achieved an extraordinary record result improving further on the record result realised in 2014,” he said. “2015 saw historically high integrated polyolefin industry margins. 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,” he added. Garrett said imports of polyolefins into Europe had been uncompetitive, following the weakening of the euro, and while this situation was likely to ease in 2016, integrated polyolefin industry margins were likely to remain solid.
Meanwhile Borealis expected profitability at its Borouge joint venture with the Abu Dhabi National Oil Company to be impacted by the lower price environment in Asia. Start up of the project’s third phase, Borouge 3, continued successfully in 2015, the group said, and would be completed once its cross-linked polyethylene plant comes on line. Garrett said Borealis expected to see what he called “solid, albeit lower profitability” in 2016 compared to 2015, and would strive towards its ultimate goal of zero injuries across its operations.
For more information contact Mrs Kerstin Meckler, Director Communications:
BOREALIS GROUP AG
Wagramer Strasse 17-19
A-1220 VIENNA / Austria
Tel. +43 1 22400389
Fax +43 1 22 400333