23 February 2012 09:00 [Source: ICIS news]
LONDON (ICIS)--Austria-based Borealis reported a 57% year-on-year drop in net profit to €58m ($77m) in the fourth quarter of 2011, largely a result of the European debt crisis, the polyolefins maker said on Thursday.
Net sales fell by 4% year on year to €1.59bn for the quarter ended 31 December 2011.
“2011 was a year of high volatility, with the economic climate improving in the first half of the year, only to deteriorate in the second half, due in part to the unresolved sovereign debt crisis,” Borealis stated.
“This shift in market sentiment had a profound impact on the European polyolefins industry, and resulted in significant margin erosion. As a result, the polyolefins business segment recorded lower profits in 2011 compared [with] 2010.”
For full-year 2011, Borealis’s net profit grew to €507m, compared with €333m in 2010, as year-on-year net sales rose 13% to €7.10bn.
“The second half of 2011 showed that the global economy is being severely impacted by the European sovereign debt crisis. However, Borealis proved yet again that the company is well prepared to ... perform in a difficult market environment,” said CEO Mark Garrett.
He added that further growth of Borouge, its plastics joint venture with Abu Dhabi National Oil Company (Adnoc), and improved profits in Borealis’s base chemicals business “contributed significantly” to group profitability in the second half of last year.
($1 = €0.75)
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