Borealis records a swing to a first-quarter net profit of €54m

06 May 2010 10:13  [Source: ICIS news]

BorealisLONDON (ICIS news)--Borealis has reported a return to a first-quarter net profit of €54m ($69.2m) in 2010, compared with a net loss of €56m recorded in the same period last year, as feedstock and polyolefin market prices continued to increase, the Austria-based polyolefins major said on Thursday.

Sales revenue for the three months ended 31 March 2010 increased 37.8% year on year to €1.4bn, as Borealis witnessed recovery in its base chemicals business group, with an increase in sales volumes in melamine and plant nutrients as well as in phenol.

“The positive result in the first quarter of 2010 is the outcome of some stabilisation that we can see in the international polyolefins industry as well as our continuous efforts in cost competitiveness and efficiency,” said Mark Garrett, Borealis chief executive.

Borealis added that its new 350,000 tonnes/year low density polyethylene (LDPE) plant in Stenungsund, Sweden, was in the final start-up phase and would be inaugurated in June 2010, while in Middle East, the Borouge 2 project, a joint venture with Abu Dhabi National Oil Company (ADNOC) at Ruwais in the United Arab Emirates, was preparing to start up in the middle of this year.

However Garrett said the company could not expect the positive upward trend to continue throughout 2010.

“We need to remain alert and cautious as we expect the second half of the year to be more difficult with additional capacities coming on stream in the Middle East and our results will be impacted by two major start-ups,” he said.

($1 = €0.78)

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