Borealis has reported a 25% year-on-year (YOY) decline in third-quarter 2019 net income to €207 million ($231 million) on a slight fall in net sales to €1.96 billion. Total sales, which includes net sales of Borealis plus pro-rata sales of equity-consolidated companies, fell to €2.39 billion, down 5.5% YOY.
The lower result was driven by weak polyolefin prices in Asia, which affected the contribution from its Borouge joint venture in Abu Dhabi, says the company. Integrated polyolefin margins for Borealis in Europe “remained solid and results of the fertilizer business further improved,” it says. The company’s net debt was reduced by €121 million on the back of the solid business performance in Europe and a dividend contribution from Borouge. “Borealis’ financial position remains healthy, with a net gearing ratio of 20% at the end of the third quarter of 2019,” it adds.
The company “achieved an acceptable third quarter result, which reinforces the solid performance of the first nine months. For the fourth quarter of 2019, we expect continued pressure on the polyolefin market in Asia and weaker integrated polyolefin margins in Europe.” says Borealis CEO Alfred Stern.
Net sales for Borealis for the first nine months of 2019 were flat YOY at €6.24 billion, while total sales including pro-rata sales of equity-consolidated companies rose €140 million YOY to €7.53 billion. Net profit for the nine-month period fell almost 10% YOY to €734 million.
By Mark Thomas
Source: Chemical Week
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