Borealis, a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilisers has reported a net profit of EUR100 million in the fourth quarter of 2012, almost double than in the same quarter of the previous year at EUR58 million.

But for 2012, the company’s revenue, pegged at EUR480 million, is lower than the 2011 recorded revenue of EUR 507 million. The lower 2012 result was largely driven by a weaker margin environment in Europe for Polyolefins. Also that year, net debt increased by EUR403 million, due in part to the acquisition of the French fertiliser producer PEC-Rhin and other investments to position the company for future growth. Despite the increase in debt, Borealis’s financial position remains strong with a gearing of 43%.

Moreover, the company continues its fertiliser growth strategy, starting this year with a firm offer made on February to TOTAL to acquire all outstanding shares of GPN SA; and to acquire a 56.86% block of shares in Rosier SA.

According to Mark Garrett, Borealis Chief Executive, the Base Chemicals business, especially the Fertiliser business, and the joint venture Borouge significantly contributed to Borealis’s positive results for the year.

The European polyolefins market continued to be challenging with lower demand levels adversely affecting margins, particularly in the second half of the year. “The year 2012 showed that the polyolefins industry in Europe is still suffering from low growth and margins, and it is likely that this will not improve materially for some time. We will further optimise our European operations in order to be sustainably profitable to grow in these volatile markets,” he said.

Khadem Al Qubaisi, Chairman of Borealis's supervisory board and Managing Director of IPIC (Abu Dhabi based International Petroleum Investment Company), said, “I am confident that Borealis’ consistent winning strategy will support the company’s growth agenda also in 2013.”