Borealis, provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers, recorded a net profit of €102 million in the first quarter of 2014, compared to €61 million in the same quarter of 2013. The improved result reflects a better performance of the polyolefins business, while the fertilizer business has been impacted by a soft market and operational challenges. Borouge delivered improved results in the first quarter of 2014 compared to the first quarter of 2013 which was strongly impacted by the turnaround of the Borouge 1 and Borouge 2 plants.

Net debt increased by €111 million in the first quarter of 2014 largely due to a dividend payment to Borealis' shareholders. Borealis' financial position remains strong with financial gearing of 48% at the end of the first quarter.

Borouge 3 start-up in full swing

Borouge is now in the commissioning stage of the start-up of its new Borouge 3 plants as planned. Borouge has increased its commercial activities and is in the process of expanding its logistics and supply chain network across Asia. During the first quarter, Borouge's innovation team started relocating to the new Abu Dhabi Innovation Centre which will enhance the company's ability to provide new value-added innovative plastics solutions. In parallel with the Borouge 3 activity, the company continues to deliver solid results from existing operations, supporting the increased profitability in the first quarter.

Turnarounds at Grand Quevilly and Kallo

In March, Borealis' Propane Dehydrogenation plant in Kallo, Belgium, successfully completed its turnaround including the replacement of equipment and maintenance. The turnaround at Borealis' fertilizer site in Grand-Quevilly, France, started in early April. Although these planned operational stops impact short term performance, they remain an important activity to ensure the company's sites continue to deliver improved efficiency and reliability over the long term.

Celebrating 20 years Borealis

In March 2014, Borealis announced a series of rebranding efforts timed to coincide with the twentieth anniversary of the company. Borealis has evolved considerably over the past two decades, developing from its early Nordic roots as a plastic manufacturer to a global provider of plastics and chemical solutions with operations across Europe as well as in the Middle East and Asia. Now supported by a solid foundation consisting of Polyolefins, Base Chemicals and Fertilizers, and its joint venture Borouge, the brand Borealis is being re-launched to reflect this significant transformation. Borealis' rebranding efforts include a new corporate design, the introduction of the new Borealis tagline, "Keep Discovering", and a redesigned corporate website.

Outlook

"The improved results in the first quarter reflect our ongoing efforts to improve efficiency and plant operability as well as a slight upturn of the polyolefins market. Yet, we have to keep in mind that the first quarter results of 2013 were strongly influenced by the Borouge turnaround," says Mark Garrett, Borealis Chief Executive. "The single biggest challenge for 2014 will be the start-up of Borouge 3. At the same time we need to remain focused on executing our strategy and ensuring the operability and safety of our European plants."