Borealis Full-Year Report 2023
The year 2023 was one of petrochemical overcapacity and flagging demand, boti of which exerted downward pressure on prices and operating rates. Overall, industry profitability and operating rates fell to levels last seen during the height of the global financial crisis of 2007-2008. While Borealis Polyolefins achieved similar sales volumes in 2023 as in 2022, at 3.50 versus 3.54 million metric tons, respectively, the net sales of the segment dropped to EUR 5,687 million in 2023 from EUR 7,041 million in 2022.
The olefin industry margin rose from the beginning of 2023. Its peak in May reflected the seasonal tightness during maintenance season. However, the unprecedented destocking during the summer period resulted in an overall lower margin compared to 2022.
Borealis Base Chemicals delivered net sales of EUR 1,201 million, down from the EUR 1,846 million reported in 2022, the result of reduced demand due to polyolefins overcapacity, and one which subsequently led to lower operating rates and lower margins.
Report on the Consolidated Financial Statements Audit Opinion
We have audited the consolidated financial statements of Borealis AG, Vienna, Austria, and its subsidiaries (“the Group”), which comprise the consolidated Balance Sheet as at December 31, 2023, the Consolidated Income Statement and the Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Cash Flow for the year then ended, and the Notes to the Consolidated Financial Statements.
Risk for the Consolidated Financial Statements
In the consolidated financial statements of Borealis AG, as of December 31, 2023, an amount of EUR 3,681 million is presented under “property, plant and equipment”, an amount of EUR 662 million under “right-of-use assets” and an amount of EUR 721 million is presented under “intangible assets” which includes goodwill in the amount of EUR 152 million. These amounts are then allocated to cash generating units (‘CGUS’) as described in Note 7 “Depreciation, Amortization and Impairment”.
