| Key figures and ratios | Q4 2020 | Q4 2019 | FY 2020 | FY 2019 | |
|---|---|---|---|---|---|
| Net Sales | EUR million | 1,692 | 1,858 | 6,818 | 8,103 |
| Total Sales* | EUR million | 2,207 | 2,246 | 8,476 | 9,768 |
| Net Profit | EUR million | 210 | 138 | 589 | 872 |
| Reduction / (increase) in net interest-bearing debt | EUR million | 77 | (212) | (264) | (241) |
| Gearing | % | 29% | 24% |
* Net sales of Borealis plus pro-rata sales of at equity consolidated companies
Borealis announces a net profit of EUR 210 million for the fourth quarter of 2020, compared to EUR 138 million in the same quarter of 2019. The positive development was driven by a stronger polyolefin market in both Europe and Asia. However, the rise in the natural gas price and operational issues impacted the contribution from the Borealis Fertilizers business.
For the full year 2020, the company recorded a net profit of EUR 589 million, compared to EUR 872 million in 2019. The 2020 result was negatively impacted by the lower oil price environment, which resulted in reduced light feedstock advantage and negative inventory effects in Europe, and a lower polyolefins price environment in Asia. Additionally, a deteriorating fertilizer market environment negatively impacted the financial result. Despite the COVID-19 pandemic, demand for polyolefins remained healthy, leading to a slight sales volume increase compared to the level of 2019.
In the fourth quarter, net debt decreased by EUR 77 million. Over the full year 2020, net debt increased by EUR 264 million. Operating cash flow in 2020 exceeded the level of 2019, allowing for ongoing investments in large growth projects, acquisitions and the payment of a EUR 300 million dividend for 2019 to Borealis shareholders. Borealis financial position remained strong, with a gearing of 29% at year-end 2020.
“While the Borealis net profit of EUR 589 million is significantly below the 2019 level, it is a strong financial result in the context of a very challenging market environment impacted by the pandemic and a declining oil price which has led to a negative price and inventory value development,” comments Borealis CEO Alfred Stern.
“Thanks to our safety culture, the agile mind-set of our organisation, and the dedication of all our staff we managed to continue operations in all of our production locations throughout the entire year, without having to implement mitigating actions like short-time work. Once again, I would like to thank all our people for their dedication and continued support. The COVID-19 pandemic has demonstrated the importance of the Borealis product portfolio for more sustainable living. We are convinced that Borealis is in a strong position to take advantage of the opportunities for recovery that the post-pandemic economy will provide by maintaining our commitment to being the leading provider of sustainable chemical and innovative plastic solutions that create value for society.”
END
Media contact:
Virginia Mesicek
Senior Manager External Communications
tel.: +43 1 22 400 772 (Vienna, Austria)
e-mail: Virginia.Mesicek@borealisgroup.com
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Borealis is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers and the mechanical recycling of plastics. We leverage our polymers expertise and decades of experience to offer value adding, innovative and circular material solutions for key industries. In re-inventing for more sustainable living, we build on our commitment to safety, our people and excellence as we accelerate the transformation to a circular economy and expand our geographical footprint.
With head offices in Vienna, Austria, Borealis has 7,500 employees and operates in over 120 countries. In 2020, Borealis generated EUR 6.8 billion in sales revenue and a net profit of EUR 589 million. OMV, the Austria-based international oil and gas company, owns 75% of Borealis, while the remaining 25% is owned by a holding company of the Abu-Dhabi based Mubadala. We supply services and products to customers around the globe through Borealis and two important joint ventures: Borouge (with the Abu Dhabi National Oil Company, or ADNOC, based in UAE); and Baystar™ (with Total, based in the US).
For more information visit:
www.borealisgroup.com
www.borealiseverminds.com
www.stopoceanplastics.com
Baystar is a registered trademark of Borealis AG.
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