Profits up for Borealis in Q3 2016
The company announced a net profit of 304 million euros in the third quarter of 2016 compared to 257 million euros in the third quarter of 2015.
November 26, 2016 by Canadian Plastics
Buoyed by what it called the continued strong integrated polyolefin industry margins and a solid contribution from its Borouge joint venture, Austria-based material supplier Borealis has posted a net profit of 304 million euros in the third quarter of 2016 compared to 257 million euros in the same period in 2015.
The company’s Base Chemicals business also saw an improved performance in the third quarter of 2016 compared to the third quarter of 2015, even though weak demand and low prices continue to impact the fertilizer business.
“With another excellent quarterly result in the third quarter, 2016 is shaping up to be another record year for Borealis,” Borealis’ chief executive Mark Garrett said in a statement. “Both Polyolefins and Base Chemicals saw an improved performance in the third quarter of 2016 compared to 2015, while Borouge also contributed significantly to the result. Within the Base Chemicals business the fertiliser business continues to suffer from low demand and depressed prices. For the fourth quarter of 2016 Borealis expects another solid result but anticipates that the market environment could become less favourable in the coming quarters.”
Also this year, the first cross-linked PE compounds based on Borealis’ proprietary Borlink technology was successfully manufactured at the Borouge 3 expansion plant in Ruwais, UAE, after the start-up of its cross-linked polyethylene (XLPE) plant. “Having reached this milestone, Borouge is now providing the first production of Borlink products for energy applications in the UAE,” Garrett said. “Marking the first commercial sales of a UAE-made XLPE grade, Borouge delivered the first shipment of compounds used in insulation applications for medium voltage energy cable systems to a number of regional and local customers.”