Borealis Announces Improved Q3 Results
Borealis AG, Vienna, Austria, recorded a net profit of EUR 185 million in the third quarter of 2014, compared to EUR 131 million in the same quarter of 2013. The improved result is a reflection of stronger margins for the polyolefins and olefins businesses, as well as the start-up of the Borouge 3 project.
Net debt increased by EUR 114 million in the third quarter of 2014 largely due to an increase in working capital needs driven by a stock build-up ahead of the site turnaround in Burghausen, Germany. Borealis' financial position remains strong with financial gearing of 47% at the end of the third quarter.
Borouge 3's newest world scale ethane cracker in Abu Dhabi is running efficiently, the rest of the plants are scheduled to start-up sequentially. With Borouge 3 operational, Borouge's total annual production will increase to 4.5 million tonnes of polyolefins, making Borouge the biggest integrated polyolefins complex in the world.
In August, Borealis announced the signing of a 10-year agreement with US-listed Antero Resources to supply, on an annual basis, 240,000 tonnes of ethane from the United States for its flexible steam cracker in Stenungsund, Sweden. A related long-term shipping agreement was signed with US-listed Navigator Holdings, who will build a new, 35,000 cbm state-of-the-art ethane vessel to ensure cost effective, safe and reliable transport of ethane to Stenungsund. The ethane supply coming to Stenungsund by ship will be stored in a purpose-built, fully refrigerated ethane tank. An amount of EUR 120 million will be invested in the Stenungsund location, including the upgrade of the cracker to enable this move to more light feed cracking.
In September, Borealis completed the acquisition of DuPont Holding Netherland B.V. shares of Speciality Polymers Antwerp N.V, located in Zwijndrecht (Antwerp, Belgium). Previously, the company was a joint venture between DuPont Holding Netherlands B.V. (67%), Borealis Polymers N.V. and Borealis Kallo N.V. (together 33%). Speciality Polymers Antwerp N.V primarily manufactures ethylene acrylates copolymers and ethylene vinyl acetate.
In October, Borealis announced plant restructuring measures aimed at optimising production in Brazil. The company has strengthened its market position in Brazil by way of a EUR 45 million investment in its Itatiba production facilities located near Sao Paulo.
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