25 February 2013 10:09 [Source: ICIS news]
LONDON (ICIS)--Borealis's fourth-quarter 2012 net profits were 72% higher at €100m ($132m) on 18% higher sales at €1.87bn, the polyolefins producer said on Monday.
The company did not explain the fourth quarter sales and profits increase but said that full year 2012 net profits had fallen by 5% to €480m largely because of the weaker polyolefins margin environment in Europe. Full year 2012 sales were up 6% at €7.55bn.
“The European polyolefins market continued to be challenging with lower demand levels adversely affecting margins, particularly in the second half of the year,” the Austria-headquartered plastics, chemicals and fertilizer producer said.
“The Base Chemicals business, especially the Fertilizer business, and the joint venture Borouge significantly contributed to Borealis’ positive results for the year.”
Capacity increases from the Borouge 3 expansion project in Abu Dhabi will lift the joint venture’s production capacity to 4.5m tonnes/year of olefins and polyolefins by mid-2014 from 2m tonnes/year today, the company said. Production capacities for the joint venture have risen sharply in recent years.
Borouge is a joint-venture between the Abu Dhabi state oil company, ADNOC, and Borealis.
“Twenty twelve showed that the polyolefins industry in Europe is still suffering from low growth and margins, and it is likely that this will not improve materially for some time. We will further optimise our European operations in order to be sustainably profitable to grow in these volatile markets,” Borealis CEO Mark Garrett said.
Borealis is owned by Abu Dhabi’s International Petroleum Investment Company (IPIC) (64%) and Austrian oil company OMV (36%).
($1 = €0.76)
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