Borealis Delivers Solid Results in 3rd Quarter
Borealis AG, Vienna, Austria, provider of innovative solutions in the fields of polyolefins and base chemicals announces a net profit of EUR 257 million for the third quarter of 2015, compared to EUR 185 million in the same quarter of 2014. The strong result reflects the continued strong integrated polyolefin industry margins, which did however begin to normalize in the second half of the quarter.
In the third quarter net debt reduced by EUR 279 million due to the solid business performance and lower working capital needs. Borealis' financial position strengthened further with a financial gearing of 25% at the end of the third quarter.
Borouge, Borealis' joint venture with the Abu Dhabi National Oil Company in Abu Dhabi, UAE, continues the successful start-up of its mega project "Borouge 3". In April, Borouge successfully started-up the low density polyethylene plant (LD1). Now all of the five polyolefin plants are running as planned. Borouge 3 will deliver an additional 2.5 million tonnes of capacity when fully ramped up, bringing the total Borouge capacity to 4.5 million t, thus making Borouge the biggest integrated polyolefins complex in the world. Borealis and Borouge will then have approximately 8 million t of polyolefin capacity.
"Financially, the third quarter of 2015 was another solid one for Borealis. With the favourable market conditions in olefins and polyolefins, Borealis capitalised on the opportunities and realised good margins. However, the polyolefin margins started to come down in the second half of the third quarter as the European supply situation eased," says Mark Garrett, Borealis Chief Executive. "Within Base Chemicals, Borealis continues to actively work to improve the operability of the fertilizer plants. The market environment is expected to be less favourable in the coming quarters. Borealis will continue to invest in safe and reliable operations."
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