07 August 2000 00:00 [Source: ICB]
Higher polyolefins prices helped boost Borealis' operating profit by 67% to E112m ($103.8m) for the first half of 2000.
Compared to the first half of 1999, the Danish polyolefins producer reported lower sales volumes for the period. The closure of PP capacity and the startup of its new 200 000 tonne/year Borstar PP plant in Schwechat, Austria, (ECN 5 June 2000) restricted production, said Borealis.
Investments during the second quarter totalled E311m, up by 73% over the same period last year. The main projects included the Borstar retrofit in Stenungsund, Sweden, the construction of the Borstar PP plant in Schwechat, and the Borouge joint venture in Abu Dhabi. The latter is expected to come onstream in late 2001.
As a result of these investments, net interest-bearing debt rose substantially, with the company's gearing at 84%, compared to 44% in the first half of 1999.
Looking ahead, Borealis anticipates uncertainty over oil prices to have an impact on its product margins in the second half of the year.
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