Vienna — Borealis AG has reported a 16.6 percent year-over-year decline in first quarter net profit, due in part to lower European integrated polyolefin margins.
The Austrian polyolefin manufacturer reported a net profit of 200 million euros ($223.7 million) for the first three months of 2019, down from 240 million euros ($268.4 million) the year before.
A turnaround project at Borouge 3 and weaker polyolefin sales prices in Asia also negatively affected the contribution from the company's Abu Dhabi-based joint venture Borouge, Borealis said May 6.
Net sales rose slightly to 2.14 billion euros ($2.4 billion) for the quarter, with improved contribution from the company's fertilizer business.
"While the European integrated polyolefins industry margin remained firm in the first quarter of 2019, the outlook on the full year remains uncertain, being driven by the looming risk of an economic slowdown as well as increased geopolitical uncertainty," CEO Alfred Stern said.
In the second quarter, Borealis said it expected a "stronger result" supported by the polyolefins business.
The company also expects Borouge to perform well after completion of the Borouge 3 turnaround.
"Our focus in 2019 shall remain on driving top performance of our existing business and on advancing the major global growth projects," Stern added.
