Borealis believes weaker global market softens third quarter results

Borealis has announced a net profit of EUR 207 million (approx €179 million) for the third quarter of 2019, compared to EUR 279 million (approx €241 million) in the same quarter of 2018.

The company believes 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 (approx €104.5 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.

With a net gearing ratio of 20 per cent at the end of the third quarter of 2019, Borealis financial position remains healthy. 

Borealis CEO Alfred Stern, said: “Borealis has 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.”