Borealis more than doubles Q2 net profit on margins, prices

12 August 2010 09:42  [Source: ICIS news]

LONDON (ICIS)--Borealis’s net profit more than doubled in the second quarter to €92m from €35m during the same period last year on improved margins and higher polyolefins prices, the plastics producer said on Thursday.

Sales revenues soared by 41.3% year on year in the second quarter to €1.61bn. Operating profits came in at €126m, up from €27m in the April to June period last year.

The company said its polyolefins business benefited from falling feedstock prices after a peak in April, while polyolefin market prices continued to increase, leading to improved industry margins.

The company started up and inaugurated a new 350,000 tonne/year low density polyethylene (LDPE) plant for wire and cable in Stenungsund, Sweden, in June.

The base chemicals business contributed to the result with volume growth and improved margins in the feedstock and olefins business. The melamine and plant nutrients business also showed improved sales volumes and profitability compared with the first half of 2009.

An investment programme was initiated to further optimise melamine and plant nutrients assets in Linz, Austria, said Borealis.

It added that major milestones were also achieved in the Borouge 2 project in Abu Dhabi with the starting up of a new ethane cracker as well as a PE plant, while contracts were signed for the Borouge 3 project.

“Our start-ups in Europe and the Middle East are progressing well, which gives us confidence for the future,” said chief executive Mark Garrett.

“However, as the world economy remains volatile we need to remain cautious in the short term. Thanks to our liquidity and the commitment of our owners we are able to continue to invest in our future, in Europe and in the Middle East,” he added.

($1 = €0.78)

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By: Hilde Ovrebekk
+44 20 8652 3214

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