Weaker global market environment softens Borealis result in the third quarter, while European business remains solid
photo: Alfred Stern, Borealis CEO
photo: © Borealis
|Key figures and ratios||Q3 2019||Q3 2018||YTD 2019|| YTD |
|Net Sales||EUR million||1,965||2,046||6,244||6,246|
|Total Sales*||EUR million||2,399||2,538||7,526||7,386|
|Net Profit||EUR million||207||279||734||812|
|Reduction / (increase) in net interest-bearing debt||EUR million||121||(282)||(29)||(666)|
*Net sales of Borealis plus pro-rata sales of at equity consolidated companies
Borealis announces a net profit of EUR 207 million for the third quarter of 2019, compared to EUR 279 million in the same quarter of 2018. The lower result was driven by weak polyolefin prices in Asia affecting the contribution from Borouge. The integrated polyolefin margins in Europe remained solid and results of the fertilizer business further improved.
In the third quarter, net debt reduced by EUR 121 million on the back of the solid business performance in Europe and the dividend contribution from Borouge. The positive variance versus the same quarter last year was largely driven by the timing of the dividend payment to Borealis’ shareholders. This year, the dividend will be paid in the fourth quarter.
Borealis financial position remains healthy, with a net gearing ratio of 20% at the end of the third quarter of 2019.
“Borealis has achieved an acceptable third quarter result which reinforces the solid performance of the first nine months,” comments Borealis CEO Alfred Stern. “For the fourth quarter of 2019, we expect continued pressure on the polyolefin market in Asia and weaker integrated polyolefin margins in Europe.”
For further information, please contact:
Senior Manager a.i., External Communications
tel.: +43 1 22 400 772 (Vienna, Austria)