Borealis has announced strong financial results for 2018, showing net profits of €906 million across the full year.
Borealis also saw a net profit of €94 million in the final quarter of 2018, compared to €247 million in the same quarter of 2017.
The fourth quarter result reflects a weaker economy and industry environment for the integrated PO business and includes and impairment charge of €92 million for the fertiliser business.
The full year net profit of €906 million, compared to 2017 profit of €1096 million, was driven by weaker integrated PO margins and an improved profit contribution from Borouge compared to 2017.
The contribution from base chemicals was lower compared to 2017, due to a continued weak fertiliser business.
Alfred Stern, CEO of Borealis, said: “2018 was another year with a strong financial performance for Borealis. With the slowdown of the global economy and the increased geopolitical risk, we expect the market conditions to be less favourable in 2019.”
“However, with our focus on customers, value creation through innovation and circularity, Borealis is well positioned for the future. Improvements in operational reliability and an embedded commercial and operation excellence mind-set will further optimise our performance.”
“Additionally, we are convinced that the dedicated management team for the Fertiliser and Melamine business will achieve significantly improved financial performance quickly. As a result we anticipate 2019 to be another good year.”
“During 2019 we will continue to increase the value we deliver to our customers by making progress on our ongoing growth projects, driving excellence in our core businesses, and taking additional steps in the circular economy.”