11 May 2012 09:00 [Source: ICIS news]
LONDON (ICIS)--Austria-based Borealis reported a 20% year-on-year drop in net profit to €140m in the first quarter of 2012, largely because of difficult market conditions, the chemical and plastics producer said on Friday.
Net sales rose 1.2% year on year to €1.88bn ($2.44bn) in the first quarter of 2012, Borealis added.
“The decrease in net profit was a result of the difficult market conditions, especially for the European polyolefin business segment,” the company said.
However, the company added its fertilizer business and joint venture with Abu Dhabi National Oil Company (ADNOC), Borouge, both performed well during the quarter.
CEO Mark Garrett said the beginning of 2012 had been difficult with margins far below long-term sustainable levels.
“The expected recovery during the coming quarters will be slow, and for Borealis dependent upon increasing political and economic stability, especially in ?xml:namespace>
“However, I remain confident that Borealis will continue to deliver a solid performance by remaining focused on its four pillars of safety, innovation, and operational as well as commercial excellence,” Garrett added.
The company said that the acquisition of fertilizer producer PEC-Rhin was also "an immediate benefit" to the company and has complemented its existing fertilizer business.
It added that its Borouge 3 expansion project in
“The expansion will increase the annual capacity of the integrated olefins/polyolefins site from 2m tonnes to 4.5m tonnes by 2014,” the company said.
($1 = €0.77)
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