Borealis engineers strong results
15 Jan 2000
Strong margins and high production levels helped Nordic polyethylene giant Borealis boost its performance more than fivefold over the first six months of the year. However, the development of margins over the coming year is 'uncertain', the Neste-Statoil joint venture warned.
Product prices increased by some 15 per cent, which lead to a strong increase in margins despite the 7 per cent increase in raw material costs caused by the strength of the US dollar. Sales increased by almost 20 per cent, to DKr8.93billion (£800million), while pre-tax profits leapt 433 per cent to DKr822million (£73million).
Borealis has a full schedule of engineering projects, including an expansion of a cracker at Stenungsund in Sweden. Costing DKr1.4billion (£125million), the project will increase the cracker's capacity from 400,000 to 610,000t/a, and will be carried out in autumn 1999. At Porvoo, polyethylene capacity is to be increased from 120,000t/a to 140,000t/a.
