May 6-Borealis made a net profit of ?4m in the first quarter as markets have stabilized, but the polyolefin producer expects the latter half of the year to be tougher.
The profit is a marked turnaround from the ?6m loss in the first quarter of 2009. Sales revenue was up by 38% year-on-year to ?.41bn in the first quarter of 2010.
Borealis said feedstock prices and polyolefin market prices have continued to increase. Industry margins improved during the first quarter due to the market improvement as well as some delays in expansion projects in the Middle East.
Borealis chief executive Mark Garrett attributed the positive result in the first quarter to more stable polyolefins markets and the group s efforts in cost competitiveness and efficiency.
"But we cannot expect the positive upward trend to continue throughout 2010, he said. We need to remain alert and cautious as we expect the second half of the year to be more difficult with additional capacities coming on stream in the Middle East and our results will be impacted by two major start-ups.
Borealis is itself a partner in the Borouge 2 project in Abu Dhabi, which is preparing to start up in the middle of this year. Borouge 3 will add another 2.5 million tonnes of polyolefin capacity by 2013, it said.
The profit is a marked turnaround from the ?6m loss in the first quarter of 2009. Sales revenue was up by 38% year-on-year to ?.41bn in the first quarter of 2010.
Borealis said feedstock prices and polyolefin market prices have continued to increase. Industry margins improved during the first quarter due to the market improvement as well as some delays in expansion projects in the Middle East.
Borealis chief executive Mark Garrett attributed the positive result in the first quarter to more stable polyolefins markets and the group s efforts in cost competitiveness and efficiency.
"But we cannot expect the positive upward trend to continue throughout 2010, he said. We need to remain alert and cautious as we expect the second half of the year to be more difficult with additional capacities coming on stream in the Middle East and our results will be impacted by two major start-ups.
Borealis is itself a partner in the Borouge 2 project in Abu Dhabi, which is preparing to start up in the middle of this year. Borouge 3 will add another 2.5 million tonnes of polyolefin capacity by 2013, it said.
