Borealis delivers another solid quarter contributing to a record net profit for the first nine months of 2016
- Borealis announces a net profit of EUR 304 million in the third quarter of 2016 compared to EUR 257 million in the third quarter of 2015
- Feasibility study for a new, world-scale propane dehydrogenation (PDH) plant in Belgium
- Borouge produces the first Borlink™ compounds for energy applications
| Key figures and ratios | Q3 2016 | Q3 2015 | YTD 2016 | YTD 2015 | |
|---|---|---|---|---|---|
| Net Sales | EUR million | 1,753 | 1,870 | 5,414 | 5,897 |
| Total Sales* | EUR million | 2,157 | 2,221 | 6,499 | 6,880 |
| Net Profit | EUR million | 304 | 257 | 868 | 746 |
| Reduction / (increase) in net interest-bearing debt | EUR million | 168 | 279 | 288 | 480 |
| Gearing | % | 13% | 25% |
* Net sales of Borealis plus pro-rata sales of at equity consolidated companies
Borealis, a leading provider of innovative solutions in the fields of polyolefins and base chemicals, announces a net profit of EUR 304 million in the third quarter of 2016 compared to EUR 257 million in the same quarter of 2015. The excellent result in the third quarter of 2016 was supported by the continued strong integrated polyolefin industry margins and solid contribution from Borouge. The Base Chemicals business also saw an improved performance in the third quarter of 2016 compared to the third quarter of 2015, even though weak demand and low prices continue to impact the fertilizer business.
Borouge, Borealis' Joint Venture with ADNOC in the United Arab Emirates (UAE), provides the first Borlink™ compounds for Energy applications
After the start-up of its cross linked polyethylene (XLPE) plant Borouge saw the first cross-linked polyethylene compounds based on Borealis’ proprietary Borlink technology being manufactured at the Borouge 3 expansion plant in Ruwais, UAE. With this milestone being reached Borouge now provides the first production of Borlink products for Energy applications in the UAE. Marking the first commercial sales of a UAE made XLPE grade, Borouge delivered the first shipment of compounds used in insulation applications for medium voltage energy cable systems to a number of regional and local customers.
Investing in the future
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 PDH plant would have a targeted annual production capacity of 740 kilotons per calendar year, making it one of the largest and most efficient facilities in the world. A new PDH plant would strengthen Borealis’ long term commitment to be the innovative polypropylene and propylene supplier in Europe
Borealis, Borouge and NOVA Chemicals invited partners and customers to “Join Our Journey” at the K Fair 2016
Borealis, Borouge and NOVA Chemicals each share a foundation of growth through innovation and a steady commitment to maintaining their engagement along the entire value chain. At K Fair 2016 in Düsseldorf, Germany they invited their respective customers and partners to “Join Our Journey” of an enhanced customer experience across global markets filled with leading-edge innovation, exciting new applications development and ongoing strategic expansion.
Outlook
“With another excellent quarterly result in the third quarter, 2016 is shaping up to be another record year for Borealis,” comments Mark Garrett, Borealis Chief Executive. “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 fertilizer 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.”
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