Borouge reports $193m quarterly profit despite major plant maintenance
Borouge has announced a net profit of $193 million for the second quarter of 2025, exceeding market expectations despite completing its largest maintenance turnaround to date.
The Abu Dhabi-listed company achieved adjusted EBITDA of $440 million in Q2, maintaining a healthy 34% margin whilst conducting planned maintenance at its Borouge 3 facility. The turnaround was completed eight days ahead of schedule and 15% faster than previous similar operations.
"Borouge's results are underpinned by healthy cash flows, disciplined execution and strong pricing premia," said CEO Hazeem Sultan Al Suwaidi. The company sustained significant price premiums above benchmark rates, achieving $249 per tonne for polyethylene and $141 per tonne for polypropylene.
Sales volumes remained robust at 1.1 million tonnes, with high-value infrastructure and advanced packaging products accounting for 41% of total volumes. Revenue reached $1.31 billion, down from $1.5 billion in the same period last year, primarily due to the planned maintenance shutdown.
For the first half of 2025, Borouge generated $2.72 billion in revenue and $1.0 billion in adjusted EBITDA. The strong performance has enabled the company to reaffirm its intention to increase the full-year dividend to 16.2 fils per share, up from 15.88 fils in 2024.
The company continues advancing its artificial intelligence and digitalisation programme, which has delivered $307 million in value year-to-date. A notable development includes partnering with Honeywell to create the petrochemical industry's first AI-powered control room.
Borouge maintains a strong balance sheet with a net debt-to-EBITDA ratio of 1.0x and continues its share buyback programme, having purchased 125 million shares by quarter-end. The company remains focused on its Borouge 4 expansion project, which will add 1.4 million tonnes of annual production capacity by end-2026.
The company is also expanding its product portfolio in healthcare and advanced packaging segments. In May, Borouge signed a strategic agreement with Mubadala Bio to explore polyolefin materials for medical devices and pharmaceutical packaging, supporting the UAE's 'Make it in the Emirates' initiative. Following the launch of the UAE's first locally produced medical-grade polyolefin, a second healthcare-grade product is expected later this year.
