Polyolefins giant Basell turned in the highest operating profits since its 2005 acquisition by Access Industries, in the first quarter of 2007, the company reported yesterday.
The ˆ237m figure, before finance costs, dwarfed the ˆ89m figure achieved in the corresponding period of last year. The company attributes the success to a favourable supply/demand picture and an improved market for polypropylene in North America.
Each of the company’s three units – Polyolefins, Advanced Polyolefins and the Technology business contributed to the record breaking result.
At ˆ186m, the operating profit from the Polyolefins business was nearly twice last year’s first quarter. Advanced Polyolefins, such as PP compounds and speciality materials like Catalloy, turned in a 32% profits increase on volumes up 9%. However, Basell notes, the Catalloy business is encountering competitive pressures and saw its profits fall significantly.
Basell’s Technology business, including licensing and catalysts, increased operating profit by 50% to ˆ18m.
The company says the outlook remains favourable but warns that pre-buying ahead of price increases may affect profits in the second quarter.
