Borealis Full-Year Report 2022
Borealis sold 3.54 million tonnes of polyolefins in 2022, 10% less than in 2021. The decrease was mainly caused by lower demand in the consumer products segment due to the slowing economy. Borealis Fertilizers sales reached 3.21 million tonnes in 2022 versus the 3.91 million sold in 2021, a decline attributed to lower demand (as product prices spiked on the back of elevated gas prices), and relatively low-priced urea imports flowing into Europe. Melamine sales volumes of 84 thousand tonnes in 2022 were significantly below the 143 thousand tonnes sold in 2021; here, the combined effect of the global economic slowdown and increased imports from China led to reduced domestic demand starting in the third quarter.
Revenue Recognition Borealis’ main business model is to produce, market and sell various goods (polyolefins, base chemicals, fertilizers and related nitrogen products) to its customers. Each sale typically includes an obligation to deliver one particular type of goods. No bundling of various goods in one contract currently exists and price is not interdependent on prices in other contracts, delivery of other goods or promises. In case of additional services provided as part of the contract that typically do not meet the requirements of a separate performance obligation in accordance with IFRS 15, no allocation of the transaction price to multiple performance obligations is necessary.