Borealis third consecutive quarter of improved profits and EUR 64 million increase versus third quarter of 2005.
| Key figures and ratios (Quarter ending September 30, 2006) | Q3 2006 | Q3 2005 | Q1-3 2006 | Q1-3 2005 | |
|---|---|---|---|---|---|
| Sales revenue | EUR Million | 1,533 | 1,232 | 4,319 | 3,550 |
| Operating profit / (loss) | EUR Million | 111 | 26 | 245 | 191 |
| Net profit / (loss) after tax | EUR Million | 104 | 40 | 227 | 174 |
| Reduction / (increase) in net interest-bearing debt | EUR Million | 38 | 21 | (77) | (81) |
| Gearing | % | 30% | 49% | 44% | 40% |
Borealis, a leading supplier of innovative plastics solutions, further improved its financial performance in the third quarter, announcing a net profit of EUR 104 million, compared to EUR 92 million in the previous quarter, and EUR 40 million for the same period last year. Net interest-bearing debt fell by EUR 38 million, and the gearing ratio dropped to 44%. These strong third quarter results were underpinned by the successful continued execution of the company's Value Creation through Innovation strategy. During the period, Borealis launched innovative plastic solutions for the infrastructure, automotive and advanced packaging markets, including:
Borealis reports that the 330,000 tonnes per year (t/y) expansion of its polypropylene (PP) facilities in Burghausen, Germany, based on its proprietary Borstar® technology, is progressing according to plan with completion scheduled for the end of 2007. This EUR 200 million investment will enable Borealis to assert its leading position in providing innovative plastic solutions for the fast-growing advanced packaging markets.
During the quarter, Borouge, the joint venture with the Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates, announced the creation of an Innovation Centre based in Abu Dhabi. Fully operational in 2009, the centre will concentrate on the development of innovative solutions for polyethylene applications and represent a significant investment in Borouge's customer-focused research capabilities in the Middle East and Asia Pacific regions. Looking ahead, Borealis Chief Executive John Taylor comments:
"Our strong performance affirms our ability to provide value creating solutions to our customers and creates a sound base for profitable growth."
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Borealis and Borouge are leading providers of innovative, value creating plastics solutions. With more than 40 years of experience in polyolefins and using our unique Borstar® technology, we focus on the infrastructure, automotive and advanced packaging markets across Europe, the Middle East and Asia. Our production facilities, innovation centres and service centres work with customers in more than 170 countries to provide the materials that make an essential contribution to society and sustainable development. We are committed to the principles of Responsible Care® and to leading the way in 'Shaping the Future with Plastics'™.
For more information on Borealis and Borouge, a joint venture between Borealis and the Abu Dhabi National Oil Company, visit www.borealisgroup.com and www.borouge.com.
Borstar® is Borealis’ proprietary technology supporting differentiated PE and PP products and is a registered trademark of Borealis A/S.
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