Solid performance in first quarter of 2020 despite looming impact of COVID-19 and falling oil prices
| Subj: Press-releses
Borealis announces a net profit of EUR 151 million for the first quarter of 2020, compared to EUR 200 million in the same quarter of 2019. The contribution from Borouge in the first quarter of 2020 deteriorated versus the same period in 2019, as an already low polyolefin price environment in Asia was further impacted by the coronavirus pandemic and falling oil prices. The drop in profit compared to the first quarter of 2019 was also due to lower European integrated polyolefin results. At the same time, the contribution from the Fertilizer business improved compared to the first quarter of 2019 thanks to increased sales volumes and lower gas prices. In the first quarter of 2020, net debt increased by EUR 116 million, due largely to the payment of a EUR 300 million final dividend over 2019 to Borealis shareholders. The cash inflow from the business result and dividends from Borouge enabled Borealis to maintain a strong financial position, with a gearing of 26% at the end of the first quarter of 2020.
Review and Outlook
“To ensure that we maintain our strong financial position despite the uncertain outlook for the global economy in the mid-term, Borealis has launched a resilience programme with focus on reduction of cost and investments and builds on previously existing initiatives. Borealis is well positioned to remain a strong partner for our customers and all other stakeholders during these exceptionally challenging times.”