In its biannual business update covering 2022, materials company Borealis AG looked back at a year that was anything but easy. But CEO Thomas Gangl 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 it again might not be clear sailing, the second half of the current fiscal 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 that realistically 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 normalize.
For Vienna-based 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 billion ($2.14 billion), making it the largest ever listing on the ADX.
K 2022 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, Gangl said.
“Also, I think we can be very proud of our decarbonization achievements with regard to our Scope 2 emissions," he said. "We have now reached nearly 30 percent of green power in our portfolio, up from zero percent in 2019. Our target is 40 percent 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 characterized by uncertainties and market volatility, 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.