Polyolefins and chemicals group Borealis (Vienna / Austria; www.borealisgroup.com) posted a third-quarter net profit of EUR 273m, down 10% year-on-year, while revenues rose 3.9% at EUR 1.82 bn. CEO Mark Garrett described the quarterly results as "solid" even though Borealis failed to match the high profit levels gained in the same period last year (see Plasteurope.com of 24.11.2016). He attributed the results to the "generally healthy integrated polyolefin margins" and strong profit contribution from its joint venture unit Borouge (Ruwais / UAE; www.borouge.com). Borealis said the fertiliser business environment remained "weak" and had a similar business performance compared to the third quarter of 2016.

Although net debt reduction in the quarter was smaller than the amount recorded last year, it said its financial position was strong. Borealis pointed out that the level of cash inflow from both the integrated polyolefin business and Borouge had more than covered the cash needed for heavy investments in projects and turnarounds. These projects included feasibility studies for the possible construction of a propane dehydrogenation (PDH) plant at its site in Kallo / Belgium (see Plasteurope.com of 09.10.2017). Furthermore, Borealis and Borouge announced the launch of "Anteo", a new family of linear low-density polyethylene (LLDPE) packaging grades (see Plasteurope.com of 30.10.2017).

"For the fourth quarter of 2017 Borealis expects another solid result," Garret said. "While the gradual normalisation of the integrated polyolefin margins continues, Hurricane "Harvey" may affect the global polyolefins business short-term." He said the fertiliser market conditions would remain difficult in the fourth quarter.

In the next nine months, Borealis also wants to study the feasibility of expanding PP capacity in Europe. A feasibility study will examine possible debottlenecking, initially in three plants in Belgium. Final investment decisions are expected to be made in the fourth quarter of 2018, with additional capacity coming onstream from Q1 2020 to early 2022.

The potential plant expansions would take full advantage of the additional propylene supply available from Borealis' newly planned PDH project in Kallo. The company says the envisaged total capacity increase would be in the range of a world-scale PP plant. The exact increase of the expansion is to be determined in the feasibility study.