Mark Garrett, Chief Executive, Borealis.
- Borealis recorded a net profit of € 174 million in the first quarter of 2011, an increase of € 120 million compared to the first quarter of 2010
- Both the polyolefins and base chemicals businesses improved versus last year’s results
- Continuing investment programme with the groundbreaking for a semi-commercial catalyst plant in Linz, Austria and the establishment of the largest butane cavern in Europe in Stenungsund, Sweden
- Borouge expansion projects progressing according to plan
VIENNA, AUSTRIA: Borealis reported a net profit of € 174 million for the first quarter of 2011, a substantial increase compared to the same quarter in 2010. This achievement was mainly driven by two factors: a healthy volume growth and margin improvement in both polyolefins and base chemicals. In addition, the Borouge joint venture provided an increased contribution given the continuing successful ramp-up of Borouge 2.
The company’s overall financial position remains strong. Gearing remains well within the target range at 43 per cent, reflecting an increase since the beginning of the year, driven largely by the dividend payment of € 100 million in March.
Borouge continues to perform well in Middle East and Asia, with firm demand for products. All the major packages for the Borouge 3 expansion project have been awarded and the implementation phase has commenced. Construction of the new innovation centre in Abu Dhabi is proceeding well and is scheduled to be completed by the end of 2011.
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Key Figures and Ratios
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Q1
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Q1
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Q4
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Year
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(Quarter ending March 31, 2011)
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2011
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2010
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2010
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2010
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Sales Revenue
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Euro M
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1,859
|
1,412
|
1,653
|
6,269
|
|
Operating profit / (loss)
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Euro M
|
179
|
(61)
|
82
|
349
|
|
Net profit / (loss) after tax
|
Euro M
|
174
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(54)
|
134
|
333
|
|
Reduction / (increase) in
net interest-bearing debt
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Euro M
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(195)
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(214)
|
9
|
(27)
|
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Gearing
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%
|
43
|
49
|
37
|
37
|
“The first quarter financial results represent an excellent start to 2011 and illustrate how our prudent and structured measures taken before and during the global crisis now position us well to benefit from the recovery. The growth in sales and margins indicates we are on track to deliver another set of solid results in 2011. We will further build on our strategic focus on innovation, operational and commercial excellence,” said Mark Garrett, Chief Executive, Borealis.
© WOC News