Profits wane at Borealis but Europe remains solid

Borealis has posted a net profit of €207 million ($229m) for the third quarter of 2019, compared to €279m ($308m) in the same quarter of 2018, on the back of weak polyolefin prices in Asia affecting the contribution from Borouge.

In the third quarter, net debt reduced by €121m ($134m) on the back of the solid business performance in Europe and the dividend contribution from Borouge. Borealis’ financial position remains healthy, with a net gearing ratio of 20 per cent at the end of the third quarter of 2019.

“Borealis has achieved an acceptable third quarter result which reinforces the solid performance of the first nine months,” said chief executive Alfred Stern. “For the fourth quarter of 2019, we expect continued pressure on the polyolefin market in Asia and weaker integrated polyolefin margins in Europe.”