Abu Dhabi’s Borouge posts Q2 net profit of $490 millionJul 28, 2022 by Energy Connects
Abu Dhabi-based petrochemicals major Borouge on Thursday posted a 35% jump in quarterly net profit to US $490 million for the second quarter of 2022, compared to its first quarter income and supported by higher sales volumes and revenue.
Borouge is a joint venture between ADNOC and Austrian chemicals producer Borealis, and this is its first earnings report as a listed company on the Abu Dhabi Securities Exchange following a blockbuster IPO that raised $2 billion in June.
Revenue for the quarter grew 18% to $1.87 billion, the company said. “This was achieved despite higher underlying feedstock prices as Borouge was able to optimise feedstock arrangements to lower overall production costs per tonne compared with the previous quarter,” said the company, which makes specialty plastics for manufacturing and consumer goods.
Borouge reported a 2.5% increase in net profit for the first half to $853 million, driven by a sales volume growth of 8.6% and average price per tonne growth of 4.1%. The company also reiterated its commitment to pay $975 million in dividends for FY 2022, and at least $1.3 billion for FY 2023.
“Borouge has delivered double digit revenue growth in its maiden half-year results as a listed company, demonstrating exceptional financial performance and commercial resilience. These impressive results follow on from the company’s record-breaking initial public offering,” Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group Chief Executive, and Chairman of Borouge, said in a statement.
“Borouge is central to the delivery of ADNOC’s ambitious downstream and industrial growth strategy and is poised for robust future growth, benefiting from the global boom in the petrochemicals sector,” he added.
Borouge generated significant cashflow in the first half of the year with a cashflow conversion at 94 per cent “reflecting its underlying higher profitability and lower capital expenditure,” the company said.