Austrian chemicals producer Borealis (Vienna; www.borealisgroup.com) has reported a year-on-year drop in net profit in the second quarter of 2012 to EUR 112m, down from EUR 168m in the same period of 2011. The company said the fall was attributable to lower results in the European polyolefins business, driven by a combination of weak economic sentiment, decreasing prices and the reduction in the price of oil. Sales in the period fell by 1.5% compared with Q2 2011 to EUR 1.87 bn.

Borealis said that its Borouge joint venture with Abu Dhabi National Oil Company (Adnoc, Abu Dhabi / UAE; www.adnoc.com) and its base chemicals business both performed well in Q2 2012, contributing significantly to net profit. The Borouge 3 expansion project in Abu Dhabi is progressing according to timetable, the company said, and is due to come on stream by mid-2014.

The construction of a EUR 75m semi-commercial catalyst plant in Linz / Austria is progressing towards its planned completion with the first chemical raw materials expected to be delivered on site in August 2012. The facility will develop and scale up new catalysts for the production of innovative polymers.

Looking forward, Borealis said that difficult market conditions may continue for a longer period. Chief executive Mark Garrett said: “The political and economic situation in Europe is difficult and the markets have reacted accordingly. Despite this, Borealis has produced a resilient set of results with particularly pleasing performance from our base chemicals business and the Borouge joint venture.”