Strong demand for polyolefins curbed the drop in profit from Q1 to E7m

Borealis has turned in second-quarter figures ahead of the same period last year but below the first-quarter figure. The polyolefins major reported an operating profit of E49m in the second quarter of this year on turnover of E1.1bn. A E7m decline from the first quarter operating profit was due to higher feedstock prices, the company said.

Speaking to PRW.com in London today, chief finance officer Clive Watson said the company’s naphtha costs in the second quarter were 44% higher than for last year’s second quarter figure in euro terms and 53% up in dollars.

Borealis results were boosted by strong demand for polyolefins and higher sales, with polymer volumes up by 17% in the quarter against the same period of 2003, when sales were weak.

Chief executive John Taylor said: “Demand for our products is growing strongly across all business areas. This is encouraging and a continuing indication that our strategy to create and deliver value for customers through innovation, continues to bear fruit.”

During the second quarter, Borealis launched a number of new products, including: polypropylene blown-film materials designed for production on machinery traditionally used for polyethylene (PRW.com 2 July); two new high-density polyethylene grades for beverage caps and closures; and Daplen polypropylene (paintable, recyclable and with zero-gap) for bumpers and rocker panels on the new 1-Series BMW.