Borealis has recorded strong financial results for 2011 despite an increasingly challenging market in the second half of the year, said the company. The firm announced a net profit of €507m in 2011, compared with €333m in 2010.
According to Borealis, 2011 was a year of high volatility with the economic climate improving in the first half only to deteriorate in the half, due in part to the unresolved sovereign debt crisis.
However, Borouge, Borealis’ Abu Dhabi joint venture, contributed significantly to its annual results through the continued ramping up of its production due to the Borouge 2 expansion. In addition, the final contracts for the Borouge 3 expansion project in Abu Dhabi were awarded during the year.
“The second half of 2011 showed that the global economy is being severely impacted by the European sovereign debt crisis, however, Borealis proved yet again that the company is well prepared to also perform in a difficult market environment,” said Mark Garrett, Borealis chief executive.
“Both our base chemicals business and the further growth of Borouge contributed significantly to our profitability in the second half of the year. While our polyolefins strategy continues to differentiate us from our competitors, results have deteriorated with the overall market. In the year to come we will focus on realising improved margins.”