Borealis posts rise in profits increased volume

Borealis posts rise in profits on increased volume

1:02 PM, 25th May 2011
Borealis posts rise in profits on increased volume
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.


 

Key Figures and Ratios 

 

Q1 

Q1 

Q4 

Year 

(Quarter ending March 31, 2011)

 

2011 

2010 

2010

2010

Sales Revenue

 Euro M

1,859

1,412

1,653

6,269

Operating profit / (loss)

 Euro M

179

(61)

82

349

Net profit / (loss) after tax

 Euro M

174

(54)

134

333

Reduction / (increase) in
net interest-bearing debt

 Euro M

(195)

(214)

9

(27)

Gearing

%

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

 

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


EU to fund project to demonstrate algae’s biorefining potential

  Nine partners from seven countries have joined in an innovative project to show that ethanol, biodiesel and bioproducts can be produced from a ...

Read more
DOE to fund US-India joint clean energy R&D centre

  WASHINGTON DC, US: US Department of Energy as part of the partnership to advance clean energy announced by President Obama and Prime Minister ...

Read more
Shaw to provide engineering services for Holtec’s small modular reactor

  BATON ROUGE, US: The Shaw Group Inc has been awarded a contract by SMR, LLC, a subsidiary of Holtec International, to provide phase one engine ...

Read more
Tata chemicals posts hike in profits and sales

MUMBAI, INDIA: Tata Chemicals recorded an increase in net profits to Rs 6.53 billion ($ 145 million), up by 8 per cent, for the fiscal year ended Marc ...

Read more
Idemitsu Kosan to acquire SDS Biotech in Japan

TOKYO, JAPAN: Idemitsu Kosan Co Ltd will start acquiring common shares and new share subscription rights of SDS Biotech K K, through a tender offer fo ...

Read more
Mitsubishi Chemical to expand PVC compound production in Thailand

  TOKYO, JAPAN: Mitsubishi Chemical Corporation will expand a polyvinyl chloride (PVC) compound production facility in Thailand, responding to g ...

Read more