Borealis reports solid results as the larger abu dhabi group grows

摘要

Borealis (Vienna) reported solid improvement in third quarter sales and earnings but warned that the global economy is still volatile and it expects results in the fourth quarter to be similar to those achieved in the last three months. Borealis's sales were up 24%, to european dollar 1.59 billion ($2.25 billion) and operating profit rose 38%, to european dollar 80 million. Net profit, which includes Borealis's share in Borouge, rose 15%, to european dollar 54 million. Borealis CFO Daniel Shook says that market conditions have "largely continued from September and the summer months" and the company is expecting similar results in the fourth quarter to those achieved in the last three months. Speaking to CW yesterday, Borealis's CEO Mark Garrett, said that the result "has been fantastic" for Borealis, considering that the company has been incurring costs with start ups of the $5 billion Borouge 2 complex at Ruwais, Abu Dhabi, and completion of Borealis's low-density polyethylene plant at Stenungsund, Sweden, dedicated to the wire & cable market. Borouge is a joint venture between Borealis and the Abu Dhabi National Oil Co. "In 2010 the market recovered more quickly than anticipated, which has a direct positive effect on our results," Garrett says. "However, we believe the world economy is still volatile and the positive trend in the polyolefins business will not be a steady upswing," he says. Overall, this is a very good result, considering we are incurring all the start up costs at the moment, Garrett says. He notes that in the past three years, the Abu Dhabi owned group, which includes, Borealis, Borouge and Nova, added 4.5 million m.t./year of olefins and 3.2 million m.t./year of polymer capacity, which was done via the acquisition of Nova and the start up of Borouge 2. "We continue to drive the group forward and are very positive toward the industry."