Borealis Reports Increase in Profit for Q4 2019

Borealis announces a net profit of EUR 138 million ($151.8 million) for the fourth quarter of 2019, compared to EUR 94 million ($103.4 million) in the same quarter of 2018.

While the 2018 result was impacted by a one-off impairment charge of EUR 92 million ($101.2 million), the result in the fourth quarter of 2019 was driven by a soft polyolefins market in Asia, lowering the contribution from Borouge. At the same time, the improved performance of the Fertilizer, Melamine and Technical Nitrogen Products segment partially mitigated the negative impact of weakening integrated polyolefins margins in Europe during the last quarter of 2019.

In the fourth quarter, net debt rose by EUR 212 million ($233.2 million). Over the full year 2019, net debt increased by EUR 241 million ($265.2 million), driven largely by the high investment level related to growth projects and the payment of a EUR 525 million ($577.5 million) dividend for 2018 and a EUR 300 million ($330 million) interim dividend for 2019 to Borealis shareholders. The cash inflow from the solid business result and dividends from Borouge enabled Borealis to keep its financial position strong, with a gearing of 24% at year-end 2019.

For the full year 2019, the company recorded a net profit of EUR 872 million ($959 million), compared to EUR 906 million ($996.5 million) in 2018.

The 2019 result was negatively impacted by a lower polyolefins price environment in Asia, which affected the contribution from Borouge. However, the negative impact was limited due to healthy integrated polyolefins margins in Europe together with improved results in the Fertilizer, Melamine and Technical Nitrogen Products segment.

“In 2019, Borealis delivered a strong financial result, only slightly below 2018 – and despite a softened economic environment. Due to the weaker global economy and heightened concern with regard to ongoing geopolitical uncertainties, we expect market conditions to remain challenging throughout 2020. Nevertheless, we anticipate that the year will be a solid one,” comments Borealis CEO Alfred Stern.