16 November 2012 09:02 [Source: ICIS news]
LONDON (ICIS)--Borealis’ third-quarter net income increased by 21% year on year to €129m ($165m), as sales rose despite difficult conditions in the European market, the Austria-based plastics producer said on Thursday.
The group’s sales in the third quarter rose 9.7% year on year to €1.92bn.
The company said its Base Chemicals business continued to perform well in the third quarter of 2012, as did Borouge, Borealis’ joint venture with United Arab Emirates (UAE) state-owned Abu Dhabi National Oil Co (Adnoc), with both businesses contributing significantly to its net profit.
“Despite the ongoing challenging market conditions in the European marketplace, the polyolefins business improved its financial results compared to the same quarter last year, supported by a higher price environment,” Borealis added.
In the year to date, the company delivered a net profit of €380m compared with €448m during the same period in 2011, while sales rose 3% year on year to €5.67bn.
Looking ahead, Borealis CEO Mark Garrett said the European petrochemical business will remain challenging.
“We will continue to optimise our European operations in order to stay at the forefront of the market. Borealis has positioned itself well over the last five years to be able to weather such difficult market conditions and always remains focused on its four pillars of safety, innovation, operational and commercial excellence,” he said.
With regard to the group’s Borouge 3 expansion project at Ruwais, Abu Dhabi, in the UAE, Borealis said progress is going as planned.
“The expansion is on track to increase the annual production capacity of Borouge’s integrated olefins/polyolefins site from the current 2m tonnes to 4.5m tonnes by mid-2014,” it said.
The company added the commissioning of its semi-commercial catalyst plant in Linz, Austria, is underway and detailed preparations are being made for start-up. The plant’s construction was completed at the end of August this year.
($1 = €0.78)
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