Borouge, an Abu Dhabi–based petrochemicals company, reported a 23 per cent quarter-on-quarter increase in net profit to $191 million in the second quarter of 2026, up from $156 million in the first quarter, supported by sales volumes of 0.9 million tonnes and stronger product pricing.
Revenue rose around 20 per cent to $1.4 billion from $1.2
billion in the previous quarter, reflecting what the company described as
operational resilience despite regional disruptions.
Production volumes reached 0.7 million tonnes, while
utilisation averaged 60 per cent during the quarter.
Borouge said it restored full asset availability at its
Ruwais complex ahead of schedule following the 5 April incident, completing
repairs by the end of June.
The company also shipped all production volumes during the
quarter, along with additional inventory, after establishing alternative
logistics routes by road, rail and sea.
The company benefited from a 53 per cent increase in average
realised prices quarter-on-quarter, driven by stronger global polyolefin prices
and record premiums for its differentiated products.
However, higher freight, logistics and propylene feedstock
costs temporarily weighed on EBITDA margins.
Hazeem Al Suwaidi, Chief Executive Officer, said, “Borouge
delivered a resilient second quarter performance despite the regional
developments, reflecting the strength of our operations, the agility of our
supply chain and the outstanding commitment of our people."
He added, "The swift and coordinated response enabled
us to implement effective alternative logistics routes, ensuring we shipped all
volumes produced, supplemented by additional volumes from inventory, during the
quarter, without dependency on the Strait of Hormuz."
Al Suwaidi said repair work had been completed safely,
restoring full production across all units affected by the April incident.
"Our financial resilience and disciplined execution
continue to support our commitment to shareholders, with Borouge annual dividend intention intact,” he stated.
The company expects to return to higher utilisation rates in
the second half of 2026, subject to logistics and feedstock availability.
Borouge also reported continued progress on the Borouge 4
expansion project, which will add 1.4 million tonnes of production capacity.
Its new Cross-Linked Polyethylene (XLPE) plant has entered
commercialisation, with the first customer shipments completed.
The facility will add 100,000 tonnes of annual capacity,
doubling Borouge's XLPE output.
Borouge highlighted the benefits of becoming part of Borouge
International, formed on 30 March 2026, creating the world's fourth-largest
polyolefins producer with 13.6 million tonnes of annual 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. The proposed tender offer to convert Borouge shares into
Borouge Group International shares is expected in 2027, subject to market
conditions and regulatory approval.
The company said average realised prices are expected to remain strong in the near term, although logistics costs are likely to stay elevated. -OGN/TradeArabia News Service
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