Borealis: Strong Financial results in the second half of 2011
Borealis recorded a net profit of EUR 507 Mio. in 2011, compared to EUR 333 Mio. in 2010. The company delivered a return on capital employed (ROCE) of 13%, compared to 10% in 2010. The gearing improved to 35%, reflecting Borealis’ strong financial position.
2011 was a year of high volatility with the economic climate improving in the first half of the year only to deteriorate in the second half, due in part to the unresolved sovereign debt crisis. This shift in market sentiment had a profound impact on the European polyolefins industry and resulted in significant margin erosion. As a result, the Polyolefins business segment recorded lower profits in 2011 compared to 2010. The Base Chemicals business segment was less impacted by the change in market sentiment, improving profits compared to 2010 driven by healthy margins and commercial excellence.
Borouge, Borealis’ joint venture with ADNOC, also contributed significantly to Borealis’ annual results through the continued ramping up of its production due to the Borouge 2 expansion.
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