Borealis: Third quarter results improve in a continuously challenging market

Borealis recorded a net profit of EUR 129 million for the third quarter of 2012 compared to EUR 107 million in the same quarter in 2011. Overall, the company has delivered a net profit of EUR 380 million year to date, compared to EUR 448 million during the same period in 2011. Net debt was reduced by EUR 63 million in the third quarter of 2012, resulting in a gearing of 41%.

The Base Chemicals business and Borouge, Borealis' joint venture in Abu Dhabi, continued to perform well in the third quarter of 2012, contributing significantly to the net profit. Despite the ongoing challenging market conditions in the European marketplace, the polyolefins business improved its financial results compared to the same quarter last year, supported by a higher price environment.

Semi-commercial catalyst plant
The construction of the semi-commercial catalyst plant in Linz, Austria, was completed by the end of August 2012. The commissioning of the catalyst plant is well underway and detailed preparations are being made for start-up.

Borouge 3 expansion project
The Borouge 3 expansion project in Abu Dhabi, UAE, is also progressing according to plan with some 23,000 contractor and sub-contractor personnel currently at site. The expansion is on track to increase the annual production capacity of Borouge's integrated olefins/polyolefins site from the current 2 million tonnes to 4.5 million tonnes by mid-2014.

European petrochemical business to remain challenging
"Current developments indicate that the petrochemical business in Europe will remain challenging," says Borealis Chief Executive Mark Garrett. "We will continue to optimise our European operations in order to stay at the forefront of the market. Borealis has positioned itself well over the last five years to be able to weather such difficult market conditions and always remains focused on its four pillars of safety, innovation, operational and commercial excellence."