In its biannual business update for the full year of 2022, Borealis looked back at a year that was anything but easy. Nonetheless, Thomas Gangl, CEO at Borealis, was not unhappy with the - as he described them - very positive financial results. “We achieved a record net profit of 2.1 billion,” he said. Looking ahead, he was optimistic, predicting that, although again, it might not be clear sailing, the second half of the year is likely to see an improvement.
“More and more people are now very positive about the development,” he told Sustainable Plastics. But, he warned, realistically speaking, there will be only ‘a moderate global GDP growth’ - and inflation continues to be too high. Commodity prices are coming down from the previous year’s all-time highs, which indicates that the situation is starting to normalise.
For Borealis, the year 2022 was marked by a number of highlights, said Gangl. He pointed to the successful listing of Borouge on the Abu Dhabi Securities Exchange, raising gross proceeds of over €2.0 billion, making it the largest ever listing on the ADX.
The K fair saw the launch of the company’s first polypropylene grades based on its Borstar Nextension Technology; a technology that enhances the performance of PP, enabling this to be tailored to specific applications, and facilitates recyclability and eco-efficiency via downgauging. The circular solutions from the Bornewables and Borcycle C and M portfolios were also well received said Gangl. “Also, I think we can be very proud of our decarbonisation achievements with regard to our scope 2 emissions. We have now reached nearly 30% of green power in our portfolio , up from zero percent in 2019. Our target is 40% until 2025. So, the team is working hard to achieve that.”
Borealis also increased its stake in the Belgian recycler, Renasci, and now holds a majority interest in the company. The acquisition will both provide the company with a long-term supply of chemically recycled feedstock from Renasci’s Ostend facility as well as give it access to key circular technologies.
All in all, in an environment characterised by uncertainties and market volatilities, with the impact of the pandemic still felt in some regions, inflation and geopolitical tensions, the fact that Borealis was able to deliver a record net profit ‘is great’, said Gangl.