Chemical maker Borealis AG has posted a big profit gain in Q1 2014 compared to a year earlier.
The Vienna, Austria-based company, which celebrates its 20th anniversary this year, recorded a net profit of EUR 102 million in the first quarter of 2014, compared to EUR 61 million in the same quarter of 2013.
“The improved result reflects a better performance of the polyolefins business, while the fertilizer business has been impacted by a soft market and operational challenges,” the company said in a statement.
Also, Borealis CEO Mark Garrett attributed the weaker first quarter results of 2013 in part to soft market conditions for the company's European polyolefins business and because of lower profits from Borouge, Borealis's joint venture with Abu Dhabi National Oil Co (Adnoc), on the back of a one-time turnaround for routine maintenance. Replacement of equipment and maintenance investments at its propane dehydrogenation plant in Kallo, Belgium, also took a toll in 2013, he added.
“The single biggest challenge for 2014 will be the start-up of our Borouge 3 [production plant in Abu Dhabi, United Arab Emirates],” Garrett said. “At the same time we need to remain focused on executing our strategy and ensuring the operability and safety of our European plants.”