Borealis, a leading provider of chemical and innovative plastics solutions, announces a net profit of EUR 333 million for the full year 2010, compared to EUR 38 million in 2009. Return on capital employed (ROCE) increased to 10% for 2010, up from 2% in 2009. Borealis maintains a solid financial position with gearing reduced to 37% compared to 43% at the end of 2009, despite net debt increasing by EUR 27 million to EUR 1,058 million by December 2010. These results were achieved in a year in which Borealis funded the Borouge 2 expansion project and continued critical investments within its European footprint.
“Borealis significantly improved its financial performance in 2010 and delivered a solid result for the year,” says His Excellency, Khadem Al Qubaisi, Chairman of Borealis’ Supervisory Board and Managing Director of IPIC (Abu Dhabi based International Petroleum Investment Company). “The past year was critical for the future of the company with two major investments being finalised. Holding a strong liquidity position, Borealis is well positioned to benefit from the economic recovery and we will continue to support its strategy of growth and ‘Value Creation through Innovation.’”
Borealis’ increased profitability was driven by improved industry conditions across all businesses combined with further efficiency gains by the organisation. The European polyolefins industry showed some recovery from its lows in 2009. Average market prices grew across the portfolio largely mirroring the recovering feedstock prices. Borouge contributed positively to the total result whilst, more importantly, successfully starting up the Borouge 2 expansion.
Within the Base Chemicals business group, the melamine business saw an increase in prices and margins during 2010 driven by a sharp rebound of global demand and temporary worldwide supply tightness. The fertilizer business unit also experienced a tight supply situation leading to increased prices across all product categories. The feedstock and olefins business saw positive developments with higher sales volumes and better industry margins. The phenol business achieved record production and sales records which supported results.
Borealis’ continuous focus on safety was instrumental in delivering yet another world-class TRI (total recordable injuries) rate of 1.0 in 2010. In recognition of its outstanding safety performance, Borealis’ location in Porvoo, Finland received the Finnish Chemical Industry’s Safety Award. The award emphasises Borealis’ continuous safety work as part of its commitment to Responsible Care.