08 November 2013 09:31 [Source: ICIS news]
(Correction: In the ICIS story headlined "Base oils, polyolefins drive improved Q3 net profit for Borealis" dated 8 November 2013, please read "base chems..." for "base oils" in the headline)
LONDON (ICIS)--Austria-based chemicals producer Borealis said on Friday that its net profit for the third quarter of the year increased by 2% compared to the same period in 2012 to €131m ($177m), buoyed by the continuing strong performance of its base chemicals division.
The result was strengthened by an improved polyolefins division earnings, despite a “continuing soft market”, Borealis said.
Fertilizer results weakened year on year as a result of operational challenges and a weakening market environment, the company added.
Group net sales for the quarter increased 6% year on year to €2.04bn, and by 6% for the first nine months of the year to €6.0bn. Net profit was down by 28% year on year to €275m for the first nine months of 2013.
The company reduced its net debt over the course of the quarter, and had a debt/equity ratio of 47% at the end of the quarter, Borealis added.
Borealis CEO Mark Garrett said that the company is expecting the years ahead to remain challenging, and would continue taking steps to improve the competitiveness of its polyolefins and expand its presence in fertilizers.
“We are pleased with our results during the third quarter, although we were held back because of some plant operability issues in the ammonia area,” Garrett said.
“We will continue our work to optimise our European polyolefin business and assets in order to improve our profitability and grow in these volatile markets... At the same time, we will continue to optimise and expand our fertilizer business, in order to create a more diversified business portfolio,” he added.
Austria’s OMV, which holds a 36% stake in the company, said on 7 November that healthy petrochemical division earnings in the third quarter of the year were buoyed by Borealis’ performance during the period.
Borealis’ contribution increased by €1m compared to the third quarter of 2012 to €47m, OMV said.
($1 = €0.74)
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