The improvement in net profit in the third quarter versus the second quarter of 2013 was driven by continued good results in Base Chemicals and an improved result for Polyolefins despite a continuing soft market. The fertilizer business delivered a lower result in the third quarter due to operational challenges and some weakening of the market environment. Borouge continued its good performance and delivered a strong result. Net debt decreased in Q3 2013 with Borealis’ financial position remaining strong reflected in a gearing (net debt/equity) of 47% at the end of the quarter.
Borouge continued to perform well during the quarter, with the expansion of its plant in Abu Dhabi gaining momentum as preparations begin for a start-up in 2014.
‘Open your mind’ was the theme for the combined presence of Borealis, Borouge and NOVA Chemicals at K 2013. Borealis highlights included lightweight solutions for the automotive sector and product innovations in surface aesthetics. “K 2013 was a big success for us,” says Alfred Stern, Borealis Executive Vice President Polyolefins. “Once again this fair proved to be the perfect platform for fruitful discussions with our customers and partners as well as a source for inspiration.”
In October, Borealis announced the sale of its proprietary Melamine high pressure process technology and its newly developed super high pressure process technology and all related intellectual property rights to Urea Casale SA, Switzerland. The divestment follows an earlier strategic decision by the company to focus on the Melamine business and production, and to exit the Melamine licensing activity. Borealis produces Melamine at two sites in Linz, Austria and Piesteritz, Germany. These sites will be not affected by the sale.
“We are pleased with our results during the third quarter, although we were held back because of some plant operability issues in the ammonia area," states Mark Garrett, Borealis Chief Executive. "We will continue our work to optimise our European Polyolefin business and assets in order to improve our profitability and grow in these volatile markets. We will take the necessary decisions now, always in line with our values, to be fit for the future. At the same time, we will continue to optimise and expand our fertilizer business, in order to create a more diversified business portfolio whilst also supporting the further growth and development of Borouge.”