Borealis achieves positive net profit and improves gearing
Apr 14, 2010
Borealis recorded a EUR 38 million net profit in 2009 as the result of a continuous focus on cost competitiveness, commercial and operational excellence Reduction of debt without restricting major investments in the growth projects LD5 (wire and cable), Borouge 2 and Borouge 3 Continued focus on safety as confirmed through a second DuPont Safety Award Key investment decision in catalyst production capabilities reinforces commitment to innovation
|Key figures and ratios |
(Quarter ending December 31, 2009)
|Operating profit / (loss)||MEUR||11||(199)||24||163|
|Net profit / (loss) after tax||MEUR||13||(122)||38||239|
|Reduction / (increase) in net interest-bearing debt||MEUR||91||93||55||(453)|
Borealis' performance was affected by the economic crisis, which hit with full force in 2009, causing a significant downturn in consumer and industry demand and placing polyolefin margins under pressure, as well as costs incurred due to the start-up of the LDPE plant in Stenungsund, Sweden. Borouge's contribution in 2009 was also impacted by the economic crisis and costs related to the upcoming start-up of Borouge 2. In order to stay competitive Borealis had to take difficult decisions, one of them being the closure of its high-density PE plant in Beringen, Belgium, by the end of March 2010.
The economic climate also had a negative impact on the base chemicals business group, specifically in the areas of melamine and plant nutrients. The feedstock and olefins business experienced lower margins while the phenol and aromatics business was able to improve largely through cost management.
Borealis achieved the lowest accident rate in the company's history with Total Recordable Injuries (TRI) per million working hours of 0.7 as compared to 1.6 in 2008. Borealis' exceptional performance was once again acknowledged with a DuPont Safety Award, in the category "Sustainable Business Impact", recognising the successful change management programme within the melamine and plant nutrients business.
2009 was an important year for advancing the company’s growth projects. Borealis' largest investment in Europe to date, the new 350,000 t/y low-density PE plant in Stenungsund, Sweden, is now in start-up phase. This investment will further strengthen Borealis' capabilities to meet the needs of the growing wire and cable markets. In the Middle East, Borouge is tripling the annual production capacity of its petrochemical complex in Ruwais, Abu Dhabi, to 2 million tonnes of polyethylene and polypropylene, with the start-up of Borouge 2 planned for the middle of the year. Borouge is also reinforcing its commitment to the growing Asian markets with a new compound manufacturing facility in Shanghai and logistics hubs in China and Singapore. Concurrently, the Borouge 3 project gains momentum with the basic engineering phase as well as the site preparation well underway, thereby laying the foundations for an additional 2.5 million tonnes per year of polyolefin capacity by the end of 2013, strengthening Borealis’ and Borouge’s ability to serve their customers throughout the world.
In 2009, Borealis further reinforced the commitment to "Value Creation through Innovation". An additional investment of EUR 75 million was announced in the area of catalyst production capabilities: Borealis is planning to build a semi-commercial catalyst plant to scale up new catalysts for value creating, innovative products in Linz, Austria. Significant milestones were achieved within Borealis’ and Borouge’s joint Water for the World™ initiative. As the first petrochemical and plastics producer to assess the water footprint of its operations and products, Borealis is pioneering this important concept for the industry. Borealis also supported the construction of water utility pipes for temporary housing facilities in L'Aquila, Italy, which suffered from severe damage after an earthquake in April 2009. A further milestone was the establishment of a "Water School" project in Finland, an educational website for school children.
"2009 was a tough year for the plastics industry. We suffered from the economic crisis, a demand drop as well as additional capacities coming on stream in the Middle East which resulted in lower margins," says Borealis Chief Executive Mark Garrett. "Despite the very difficult, recessionary environment Borealis maintained, as promised, its focus on safety, innovation and commercial excellence as well as its growth projects whilst re-emphasising cost reductions and cash generation to very successfully manage through an extremely difficult environment. This year's financial result is lower than what we recorded in the boom years but in light of the severe recession this is an outstanding achievement that goes beyond our record year of 2007 and is a testament to our employees' hard work and commitment. With two major start-ups, more Middle East capacity coming online and a continuing difficult economy we expect 2010 to be even tougher than 2009."
1220 Vienna, Austria
More News and Articles
Mar 17, 2023
Trenchless manufacturer celebrates installation of 100,000th liner
SAERTEX multiCom®’s trenchless pipe relining product, SAERTEX-LINER, has been installed for the 100,000th time.
Mar 13, 2023
Spring collaborates with Microsoft and Impact X on water innovation
The water sector’s innovation centre of excellence – Spring - is collaborating with Microsoft and Impact X on a new initiative to make tools and funding available for start-ups to accelerate their companies.
Mar 10, 2023
State of Global Water Resources report informs on rivers, land water storage and glaciers
WMO reports on freshwater availability in a changing climate
Mar 08, 2023
Australia: Centenarian sewer gets after-dark upgrade
Over 100 years since its inception, Brisbane’s S1 Main Sewer has undergone a seven-year upgrade.
Mar 06, 2023
UKWIR gives access to hundreds of water sector research reports
UK Water Industry Research (UKWIR) is providing free access to over 1,000 of its water sector research reports aimed at helping to improve water and wastewater services for customers, and protecting the environment.
Mar 03, 2023
Sector must challenge public misconceptions through engagement
The water sector must tackle “unfair criticisms” by sharing more about the great work it delivers, Yorkshire Water’s chief executive, Nicola Shaw, told attendees at British Water’s Better Together reception in Hull.
Mar 01, 2023
World-first project to ‘self heal’ cracked concrete using sludge could save $1.4 billion repair bill to Australia’s sewer pipes
Water treatment sludge could be used to prevent 117,000 kilometres of sewer pipes in Australia from cracking in future, without any intervention by humans, helping to save $1.4 billion in annual maintenance costs.
Feb 27, 2023
Delaware Water Treatment Plant Opts for Penetron to Protect New Concrete Structures
The final 2022 commissioning of the Doe Run Road Water Treatment Plant enables the city of Newark, Delaware (USA), to increase the quantity and quality of the city's drinking water to better meet growing demand – and EPA guidelines. PENETRON …
Feb 24, 2023
Aussie Trenchless: the future of pipe rehabilitation solutions
Aussie Trenchless has been passionate about progressing future infrastructure opportunities and accomplishing superior outcomes since it was founded in 2014.
Feb 22, 2023
IWA-Grundfos UN Water Conference youth delegates announced
The International Water Association and Grundfos are proud to announce that 14 bright and promising international young water professionals (YWPs) have been selected to be part of a delegation to the upcoming UN 2023 Water Conference, on 22-24 March 2023 …
Feb 20, 2023
Smart Lock makes short work: Hong Kong sewer drain repair
When the Hong Kong Drainage Services Department identified a badly damaged pipe, it was Smart Lock’s sleeve solution that empowered contractors to successfully rehabilitate the damaged section.
Feb 17, 2023
iMPREG celebrates UV Liner installation success in the UK
iMPREG has helped complete the task of installing an ultraviolet liner in the United Kingdom.