Chemical company Borealis AG saw profits rise 18 percent year-over-year in the third quarter of 2016 to 304 million euros ($329 million) boosted by polyolefins sales.
The profit for the third quarter of 2016 compared to 257 million euros ($271 million) in the same quarter of 2015.
The Vienna-based 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 fertilizer 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 sales drop from 1.87 billion euros ($1.97 billion) in Q3 2015 to 1.75 billion euros ($1.79 billion)
Explaining the drop, 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 few 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 kilotonnes 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 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 favorable in the coming quarters.”