24 February 2014 09:01 [Source: ICIS news]
LONDON (ICIS)--Borealis' fourth-quarter net profit jumped 48% year on year to €148m, as sales over the period rose 15% to €2.15bn, the Austria-based plastics, chemicals and fertilizer producer said on Monday.
However, for the whole of 2013, net profit decreased 12% year on year to €423m on the back of a softening fertilizer market and lower earnings from Borouge, a joint venture between Borealis and the Abu Dhabi national oil company (ADNOC), based in Ruwais, Abu Dhabi.
“Borouge delivered a lower result in 2013 compared to 2012 due to the major turnaround in the first quarter of 2013 and costs incurred for the finalisation and preparation for start-up of the Borouge 3 project,” the company said.
Full-year sales rose 7.9% to €8.14 in what the company considers a landmark as it surpasses the €8bn barrier for the first time.
Borealis’ CEO, Mark Garrett, said: “At the beginning of 2013 we knew it was going to be a challenging year, given the transformational activity ongoing within the company and the continuing difficult market environment in Europe.”
In March, Borealis acquired Dutch speciality plastics producer DEXPlastomers, now renamed Borealis Plastomers, for an undisclosed fee. The company also acquired French fertilizer manufacturer GPN (now Borealis Chimie) and a 56.86% stake in Belgian mineral fertilizer company Rosier from Total in June. Today, Borealis holds 77.47% of the shares of Rosier.“Although profits are lower in 2013, they have exceeded our expectations as the organisation was able to optimise performance across the businesses,” said Garrett.
Garrett had already predicted in August that its net profit in 2013 would be below 2012’s on the back of capital expenditure on its Abu Dhabi’s Borouge 3 expansion project and the aforementioned acquisitions.
The Borouge 3 expansion project will raise the venture’s olefins and polyolefins capacity from 2m tonnes/year to 4.5m tonnes/year and is expected to come on stream during 2014.
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