Borealis reports a net profit of EUR 107 million in the third quarter of 2011 compared to EUR 54 million in the same quarter of 2010. Overall the company announces a net profit of EUR 448 million year to date, compared to EUR 200 million during the same period in 2010. Borealis' net debt position improved in the third quarter by EUR 17 million, resulting in a gearing of 38%. These results were achieved in an increasingly challenging European market, particularly within the Polyolefins business segment. The Base Chemicals business segment also reported lower results, as margins have reduced from their peak in the second quarter of 2011.
Borouge Borealis' joint venture in Abu Dhabi, Borouge performed well in the third quarter, continuing to successfully ramp up production of new polyethylene and polypropylene grades at its plant in Ruwais, Abu Dhabi. The distribution of the additional volumes to Borouge´s customers is supported by the three logistics hubs in China and Singapore. The Borouge 3 project, which will increase the annual production capacity of the plant by 2.5 million tonnes to 4.5 million tonnes by 2014, is progressing as scheduled.
"Whilst our third quarter financial results are very good" says Mark Garrett, Chief Executive of Borealis, "we have, as expected, found market conditions particularly in Europe, to be progressively more difficult. We see that our customers have become more cautious due to the unstable economic environment. However, our long term strategy is continuing to benefit our business and we remain committed to delivering value creating solutions for our customers around the world."