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Al Etihad
31-07-2025
- Business
- Al Etihad
Borouge announces $193 million Q2 net profit
31 July 2025 13:33 ABU DHABI (ALETIHAD) Borouge Plc, a leading petrochemicals company providing innovative and differentiated polyolefins solutions, today announced a net profit of $193 million for the second quarter of 2025, exceeding market results reflect disciplined execution of the planned Borouge 3 turnaround, with the company maintaining strong margins and healthy cash generation on the back of effective cost management and sustained premia across its high-value product Borouge 3 turnaround was successfully executed during the quarter, completed safely, within budget and delivered eight days ahead of the largest and most complex turnaround to date, the company optimised downtime by 15 per cent, reflecting the efficiency of the company's planning and execution planned, regular six-year maintenance turnarounds are essential to servicing Borouge's world-class assets and maintaining high utilisation rates and production EBITDA for the second quarter was $440 million, reflecting performance above expectations during the planned Borouge 3 turnaround. Borouge maintained a healthy EBITDA margin of 34 per cent, supported by product mix optimisation throughout a scheduled major maintenance Sultan Al Suwaidi, Chief Executive Officer of Borouge, commented, 'Borouge's results are underpinned by healthy cash flows, disciplined execution and strong pricing premia, following the successful completion of the planned Borouge 3 turnaround, our largest to date."He added, "Reflecting our commitment to delivering shareholder value, we reaffirm our intention to increase Borouge's dividend to 16.2 fils per share for 2025 and our proposed H1 2025 dividend of 8.1 fils per share to be paid in September. The increased dividend is also expected to serve as the intended minimum share payout to at least 2030 under Borouge Group International.'Strong pricing premia above product benchmark prices for polyethene (PE) and polypropylene (PP) remained a key highlight of the quarter, with $249 per tonne achieved for PE and $141 per tonne for PP, both exceeding management's through-the-cycle by Borouge's ability to reallocate volumes to maximise netbacks, its differentiated portfolio and disciplined execution, the company sustained premium positioning despite softer market reported revenue of $1.31 billion in Q2 2025, compared to $1.5 billion in Q2 2024, taking into account the planned Borouge 3 maintenance, reflecting a quarter that balanced disciplined asset management with the company's ongoing commitment to delivering value for volumes totalled 1.1 million tonnes, broadly stable quarter-on-quarter, supported by approximately 140 kilotonnes of inventory sales. High-value products continued to account for 41 per cent of total volumes, with strong momentum in infrastructure and advanced packaging expenditure in Q2 amounted to $130 million. Borouge closed the quarter with a net debt-to-EBITDA ratio of 1.0x, maintaining a strong balance sheet and significant financial the first half of the year, revenue stood at $2.72 billion compared to $2.81 billion in H1 2024. Adjusted EBITDA reached $1.0 billion versus $1.18 billion in the prior-year period, with margins supported by strong pricing premia, cost discipline and inventory sales. Sales volumes totalled 2.39 million tonnes, down just 2 per cent year-on-year, reflecting Borouge's operational resilience and agility. The company has proposed an increased minimum interim dividend of 8.1 fils per share for the first half of 2025, subject to shareholder approval at the upcoming General Assembly in August. This interim payout reflects the first instalment of the previously announced intention to increase the full-year 2025 dividend to 16.2 fils per share, marking an uplift from 15.88 fils in 2024, representing an estimated dividend yield of 6.1 per cent at the current share price, one of the highest on the Abu Dhabi Securities Exchange (ADX). This reinforces the company's increased dividend its listing in 2022, Borouge has paid a total of $3.58 billion in dividends to shareholders. Upon completion of the proposed Borouge Group International transaction, the newly formed entity intends to maintain an annual minimum dividend of 16.2 fils per share up to at least 2030. This represents a cumulative shareholder return of approximately 37 per cent with a strong upside potential and a 90 per cent dividend payout ratio of net continues to execute a share buyback approved at its AGM in April, reflecting the company's strong confidence in its prospects. It has purchased 125 million shares at the end of the second quarter, with transactions reported as per ADX regulatory continues to advance its company-wide AI, Digitalisation and Technology (AIDT) programme, which has delivered $307 million in value year-to-date. A key milestone this year was the launch of its proof-of-concept project with Honeywell to develop the petrochemical industry's first AI-powered control room, enabling autonomous operations at Borouge's Ruwais facilities. Source: Aletihad - Abu Dhabi
Al Etihad
11-06-2025
- Business
- Al Etihad
Borouge, ADNOC L&S enter $531 million partnership to accelerate UAE petrochemical exports
11 June 2025 09:49 ABU DHABI (WAM) Borouge Plc and ADNOC Logistics & Services Plc (ADNOC L&S) have entered a 15-year strategic partnership that will support a significant increase in the production and export of petrochemicals from the mutually beneficial service agreement will deliver a minimum guaranteed value of $531 million (Dh1,950 million), supporting the next phase of Borouge's accelerated growth plans, driving operational cost savings over the full contract term, realising more than $50 million in cost savings and efficiencies in the first five years alone, and enhancing the company's supply chain agreement covers port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City, Abu L&S will manage the transportation of up to 70 per cent of Borouge's annual production, which will increase significantly following the completion of the Borouge 4 plant expansion. It will deploy a minimum of two dedicated container feeder ships to transport Borouge's products from Al Ruwais to the deepwater ports of Jebel Ali in Dubai and Khalifa Port in Abu Sultan Al Suwaidi, CEO of Borouge, commented, 'This agreement builds on our long-standing collaboration with ADNOC L&S, a partnership that has been instrumental in meeting the evolving needs of our customers in high-growth markets."It brings significant benefits to Borouge; driving substantial operational cost savings and enhancing our Logistics Variable Cost (LVC), as well as complementing our existing rail operations and expanding the flexibility of our supply chain network. With the rapid increase in our production capacity, we are advancing our capabilities in delivering differentiated products and solutions efficiently, while keeping pace with rising global demand."As Borouge plans to ramp up production capacity by 1.4 million tonnes per annum by the end of 2026 through its Borouge 4 mega project, Borouge will become the world's largest single-site polyolefin partnership with ADNOC L&S will further enhance Borouge's supply chain efficiency as well as reinforce ADNOC L&S' commitment to delivering innovative, integrated supply chain solutions that enhance trade, strengthen industrial resilience, and support the UAE's vision for economic diversification and global Abdulkareem Al Masabi, CEO of ADNOC L&S, said, 'This comprehensive container terminal agreement marks a major milestone in our successful partnership with Borouge, delivering on ADNOC L&S' strategy to provide seamless, end-to-end logistics solutions that power the UAE's industrial growth and export leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge's world-class petrochemical products reach global markets efficiently and competitively.'ADNOC L&S' integrated logistics capabilities include managing container terminal operations, feeder services, and logistics solutions to meet increasing global demand. The agreement comes as ADNOC L&S continues to grow its international presence, providing comprehensive logistics solutions for global customers across various sectors.
