Third-quarter net profit at Borealis (Vienna / Austria; www.borealisgroup.com
) declined 25.8% to EUR 207m compared with the same period in 2018 largely driven by weak polyolefin prices in Asia. The weaker prices had affected the contribution of joint venture Borouge (Ruwais / United Arab Emirates; www.borouge.com
) to group results. For the nine-month period to September, net profit contracted 9.6% to EUR 734m.
Quarterly net sales dropped 4% to EUR 1.96 bn but was stable at EUR 6.24 bn in the January-September period. Borealis said the integrated polyolefin margins in Europe remained solid, and results of the fertiliser business improved further.
Compared to an increase of EUR 282m in Q3 2018, net debt this time was cut by EUR 121m on the back of the solid business performance in Europe and the dividend contribution from Borouge. Borealis plans to pay shareholder dividends in the fourth quarter. The Austrian company said its financial position remains healthy, adding the net gearing ratio was 20% as of 30 September compared to the year-earlier figure of 23%.
Borealis has achieved an acceptable third-quarter result which reinforces the solid performance of the first nine months, CEO Alfred Stern said. For Q4 2019, the group expects continuing pressure on the polyolefins market in Asia and weaker integrated polyolefin margins in Europe.