Borealis lifts Q1 op profits by 7.9% to €137m

06 May 2008 10:42  [Source: ICIS news]

Borouge plant at nightLONDON (ICIS news)--Borealis lifted first quarter operating profits by 7.9% to €137m ($211m) despite “challenging market conditions”, the Austria-based polyolefins producer said on Tuesday.

Net profit for the quarter was 15% higher year-to-year on sales 14.5% ahead at €1.70bn.

The quarterly results were achieved by growth in infrastructure, automotive and advanced packaging polyolefins markets and the contribution from Borouge and the newly-formed base chemicals business, Borealis said.

Borouge is a joint venture with the Abu Dhabi National Oil Company (Adnoc).

Borealis said it had taken on more debt in the quarter with gearing rising to 36% from 30% in the first quarter of 2007.

"Our steadfast dedication to innovation, operational competitiveness, commercial excellence and safety combined with a strong focus on our key market segments continue to drive sales growth and bring us good results,” CEO Mark Garrett said commenting on the quarterly results.

Borealis’s largest European investment to date, on a 350,000 t/y low-density polyethylene (LDPE) plant to serve the wire and cable market is on-track for completion in 2009, the company said in a statement.

In the first quarter it signed a memorandum of understanding with Abu Dhabi’s International Petroleum Investment Company and the Abu Dhabi Investment Council for the creation of a new Chemicals Industrial City in the emirate.

It is also conduction a feasibility study for a further expansion of the Borouge joint venture which would add approximately 2.5 million tonnes per year of polyolefins capacity by 2014.

($1 = €0.65)

By: Nigel Davis
+44 20 8652 3214

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