Borealis posts 55% rise in Q2 operating profits

08 August 2007 10:24  [Source: ICIS news]

LONDON (ICIS news)--Borealis achieved a 55% increase in second-quarter operating profits to €152m ($208m) as a result of a strong market and its focus on specialised applications, the polyolefins producer and technology supplier said on Wednesday. 

Borealis' operating profits of €280m for the first six months of 2007 were more than double compared with the same period in 2006. Meanwhile, sales for the second quarter totalled €1.59bn - up 9.6% on April to June last year, it reported in a brief earnings statement.

The company's performance was driven by strong market conditions coupled with the focus on specialised applications, enabling it to better manage pressure from rising feedstock prices, Borealis said.

The increase in operating profits was achieved in spite of maintenance turnarounds at the company's steam crackers in Norway and Finland.

Borealis' results have shown strong growth in recent years - its 2006 second-quarter results were up 78.2% on April to June 2005.

During the current second-quarter Borealis completed the acquisition of Agrolinz Melamine International and sold the company’s Norwegian polyolefin business and its share in the Noretyl gas cracker to Ineos.

Borealis said the company’s growth in the Middle East and Asia was being boosted by Borouge, the company’s joint venture with the Abu Dhabi National Oil Company (Adnoc).

“Major contracts valued at approximately $4.7bn have now been signed for Borouge 2, the major expansion project in Ruwais, Abu Dhabi, aimed at tripling annual production capacity to 2m tonnes of polyolefins by 2010,” the company said.

“We are encouraged by our record results and look forward to another strong year,” added Borealis chief executive John Taylor.

($1 = €0.73)

By: Lucy Craymer
+44 20 8652 3214

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