Borealis: Positive Net Profit in 2009
Borealis, a provider of chemical and innovative plastics solutions, announces a net profit of EUR 38 million for the full year 2009, compared to EUR 239 million in 2008. The company ended 2009 with a return on capital employed (ROCE) after tax of 2%, down from 9% in 2008. Despite its ongoing significant investments, Borealis’ net interest-bearing debt decreased by EUR 55 million due to a significant focus on working capital management and specific cost reduction measures. Borealis’ financial position remains solid with a gearing ratio of 43% at the end of 2009, compared to 47% at year-end 2008.
Borealis’ performance was affected by the economic crisis, which hit with full force in 2009, causing a significant downturn in consumer and industry demand and placing polyolefin margins under pressure, as well as costs incurred due to the start-up of the PE-LD plant in Stenungsund, Sweden. Borouge’s contribution in 2009 was also impacted by the economic crisis and costs related to the upcoming start-up of Borouge 2.
In order to stay competitive Borealis had to take difficult decisions, one of them being the closure of its high-density PE plant in Beringen, Belgium, by the end of March 2010.
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