Austria-based chemical maker Borealis AG posted a net profit of 351 million euros in the second quarter of 2015, up from 143 million euros in Q2 2014.
The Vienna-based firm said the result reflects improvements in all three portfolios of Borealis, particularly the polyolefins segment.
“In the second quarter of 2015, integrated polyolefin producers saw strong industry margins,” the company said in a statement. “Despite lower feedstock costs, polyolefin prices did not retreat driven by a tight market as a result of solid demand combined with a supply shortfall. In addition, imports of polyolefins into Europe have been uncompetitive following the weakening of the Euro. However, in the first quarter of 2015, the falling monomer prices did cause large negative inventory effects for polyolefin producers.”
The company also noted that, in April, its low density polyethylene plant (LD1) had a smooth start-up. “With this start-up, all five polyolefin plants are now running as planned. The only remaining unit to be started-up is the cross-linked polyethylene (XLPE) plant which is scheduled towards the end of 2015 and will complete the start-up of the Borouge 3 mega project,” Borealis said. “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 tonnes, thus making Borouge the biggest integrated polyolefins complex in the world. Borealis and Borouge will then have approximately 8 million tonnes of polyolefin capacity.”
Last month, Borealis announced a EUR 160 million investment in its production location in Stenungsund, Sweden. “The investment entails the upgrade and revamp of four cracker furnaces to the highest currently available standards in process safety and energy efficiency,” the company said. “The Stenungsund programme is scheduled to begin in late 2016 and be completed by 2020.”