Dubai, UAE — Borouge, a polyolefins manufacturing joint venture of the Abu Dhabi National Oil Company and Borealis of Austria, has announced revenues of $1.38 billion and a net profit of $199 million.
The company reported adjusted EBITDA of $460 million and said that its value enhancement program has already delivered a significant impact of more than $100 million in efficiencies and revenue optimization.
Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, said the company will pay a final dividend of $650 million to shareholders, bringing total post-IPO dividends for 2022 to $975 million.
“We remain committed to paying dividends of $1.3 billion for 2023,” he said and added that the turnaround of Borouge 2 facility was completed on time and on budget, returning the company’s asset base to full production capacity from the second quarter onwards,” he said.
Quarterly sales volumes of 1,157kt increased by 5.1 percent year on year, with constraints on volumes compared with the previous quarter.
Net profit for the period was $199 million, with lower sales volumes partially offset by strengthening prices. Cash conversion in the first quarter was 82 percent, with Capex increasing by 8 percent quarter-on-quarter in support of the Borouge 2 turnaround.
The company said with a significant cash balance of over $1 billion, Borouge repaid $500 million of its $3.65 billion loan, which resulted in interest cost savings.
Borouge is the fifth company that ADNOC has brought to market since 2017 and follows the successful IPOs of ADNOC Distribution, ADNOC Drilling, Fertiglobe and ADNOC Gas. The Borouge IPO had raised more than $2 billion with the offering oversubscribed 42 times on overwhelming demand of over $83.4 billion.