Dubai, UAE — UAE petrochemicals producer Borouge reported a 23 percent rise in second-quarter net profit on Friday, helped by higher realised prices and resilient sales after restoring operations at its Ruwais complex following an April incident.
Net profit rose to $191 million in the three months ended June from $156 million in the first quarter, while revenue increased about 20 percent quarter-on-quarter to $1.4 billion from $1.2 billion, the company said.
Borouge shipped 0.9 million tonnes during the quarter despite regional disruptions, using alternative road, rail and sea logistics routes to deliver all production as well as additional inventory.
The company completed repairs at the affected Ruwais assets by the end of June, restoring full production availability ahead of schedule after the April 5 incident.
Average realised prices rose 53 percent from the previous quarter, supported by stronger global polyolefin prices and higher premiums for Borouge’s differentiated products.
Chief Executive Officer Hazeem Sultan Al Suwaidi said the company’s operational resilience and supply chain flexibility enabled it to maintain customer deliveries without relying on the Strait of Hormuz.
“Our financial resilience and disciplined execution continue to support our commitment to shareholders, with Borouge Plc’s annual dividend intention intact,” Al Suwaidi said.
Production volumes totalled 0.7 million tonnes during the quarter, while average plant utilisation was 60 percent. Borouge said utilisation rates were expected to recover during the second half of the year, subject to logistics and feedstock availability.
Higher freight, logistics and propylene feedstock costs weighed on EBITDA margins, although these were partially offset by stronger selling prices.
Borouge said its Borouge 4 expansion project continued to progress, with its new cross-linked polyethylene plant entering commercialisation and delivering its first customer shipments. The plant will add 100,000 tonnes of annual capacity, doubling the company’s output of the material.
The company also highlighted benefits from its integration into Borouge International, created in March through a merger that formed the world’s fourth-largest polyolefins producer by nameplate capacity with 13.6 million tonnes of annual production capacity across 30 manufacturing sites.
Borouge International reported adjusted EBITDA of $1.8 billion in the second quarter, supported by stronger pricing in North America and Europe.
Borouge maintained its annual dividend intention of 16.2 fils per share. It said a proposed tender offer to convert Borouge Plc shares into Borouge Group International AG shares is expected in 2027, subject to market conditions and regulatory approvals.
