Borealis reports record net profit for 2015

The improved result over 2015 was driven by overall stronger margins in the polyolefins business and a higher contribution from the base chemicals business. Moreover, Borouge, Borealis' joint venture with the Abu Dhabi National Oil Company (ADNOC) in Abu Dhabi, UAE, also played a part in achieving these results, as the start-up of its mega project "Borouge 3" smoothly continued throughout the year 2015.

In April, Borouge successfully started-up the low density polyethylene plant (LD1). Now the cracker and all of the five polyolefin plants are running as planned. The only remaining unit to be started-up is the cross-linked polyethylene (XLPE) plant which will complete the start-up of the Borouge 3 mega project.

Once fully ramped up, Borouge 3 will deliver an additional 2.5 million metric tons of capacity, bringing the total Borouge capacity to 4.5 million metric tons, thus making Borouge the biggest integrated polyolefins complex in the world. Borealis and Borouge together will then have approximately 8 million metric tons of polyolefin capacity.

“2015 was a very good year financially for Borealis where we achieved an extraordinary record result improving further on the record result realized in 2014. However, work continues to improve on our safety and operational reliability,” comments Mark Garrett, Borealis Chief Executive.

“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 explained.

He also noted that imports of polyolefins into Europe have been uncompetitive following the weakening of the Euro. “We expect this situation to ease in 2016, but we believe the integrated polyolefin industry margin will be solid,” he commented.

He added: “Overall, Borealis expects to see a solid, albeit lower profitability in 2016 compared to 2015, as the strategy of growing the three profit centers polyolefins, base chemicals and Borouge contributes to ensure the competitiveness and resilience of the company.”