Austrian polyolefins and fertilisers producer Borealis (Vienna; www.borealisgroup.com) achieved a 73% hike in net profits to EUR 988m in 2015, thanks to stronger polyolefins margins, the start-up of the Borouge 3 project and a higher contribution from the base chemicals business. Group net sales, however, fell by 8% to EUR 7.7 bn. “2015 saw historically high integrated polyolefin industry margins,” said CEO Mark Garrett. “Despite lower feedstock costs, polyolefin prices did not retreat to the same extent, driven by a tight market as a result of solid demand combined with a supply shortfall, in particular resulting from unplanned production stops.” At the same time, imports of polyolefins into Europe have been uncompetitive following the weakening of the euro, he added.

Borealis said Borouge, its joint venture with Abu Dhabi National Oil (Adnoc, Abu Dhabi / UAE; www.adnoc.com), continued to start up its new Borouge 3 complex throughout 2015. The cracker and all of the five polyolefins plants are running as planned, and the XLPE plant is the only remaining unit to be started up.

In the fourth quarter of 2015, Borealis’ net profits reached EUR 242m, from EUR 141m a year earlier, but sales were 9% lower at EUR 1.80 bn.

Looking ahead, Borealis said it believes the integrated polyolefin industry margin will be “solid” in 2016, but it expects that Borouge’s profitability will be impacted by the lower price environment in Asia. “Overall, Borealis expects to see a solid, albeit lower, profitability in 2016 compared to 2015,” stated Garrett.