BRUSSLES: Base chemicals specialist Borealis saw profits rise 18% year-on-year in the third quarter (Q3) of 2016 to €304m (£260m) boosted by polyolefins sales. The Austria-based firm announced a net profit of €304m (£260m) in Q3 of 2016 compared to €257m (£220m) in the same quarter of 2015.
The company said that its base chemicals business also saw an improved performance in Q3 of 2016 compared to Q3 2015, even though weak demand and low prices continue to impact the fertiliser business.
Borealis chief financial officer Mark Tonkens told PRW: “The third quarter of 2016 was a strong result for us. We are really excited about the financial performance.” However the firm saw turnover drop from €1.87bn (£1.6bn) in Q3 2015 to €1.75bn (£1.5bn).
Explaining the drop in turnover, Tonkens added: “Revenue is not the key driver for us. We look at volume development. We regard this as the sixth quarter in a row where we have achieved a peak performance. “For 2017, we are expecting another good year, but maybe not as good as 2016.”
In September, Borealis announced a feasibility study for a new world-scale propane dehydrogenation (PDH) plant. The plant would be located at the existing Borealis production site in Kallo, Belgium. The feasibility study will be carried out over the next quarters, with the final investment decision expected to be taken in the third quarter of 2018. The potential start-up of the plant is scheduled for the second half of 2021. The new plant would have a targeted annual production capacity of 740 kilotons per year.
“With another excellent quarterly result in the third quarter, 2016 is shaping up to be another record year for Borealis,” added Borealis chief executive Mark Garrett.
“Both Polyolefins and Base Chemicals saw an improved performance in the third quarter of 2016 compared to 2015, while Borouge also contributed significantly to the result. Within the Base Chemicals business the fertiliser business continues to suffer from low demand and depressed prices. For the fourth quarter of 2016 Borealis expects another solid result but anticipates that the market environment could become less favourable in the coming quarters.”
