Borouge has announced a 52 per cent
quarter-on-quarter (QoQ) net profit increase to $295 million in Q3 2025,
exceeding market expectations and driven by record production, strong sales,
and resilient margins following Borouge 3 plant turnaround in Q2.
Adjusted EBITDA for Q3 rose to $565
million, representing an industry-leading 39 per cent margin, up from 34 per
cent in the previous quarter.
The higher margin reflects strong sales
volumes, first quartile operating costs and robust quality pricing premia.
Despite benchmark prices declining QoQ,
Borouge achieved $233/t for polyethylene (PE) and $142/t for polypropylene (PP)
during the first nine months of 2025, remaining above guidance and reflecting
the strength of its differentiated and innovative product portfolio.
Hazeem Sultan Al Suwaidi, Chief Executive
Officer of Borouge, commented: “Our exceptional Q3 results reinforce Borouge’s
position as the world’s most profitable polyolefins company. We delivered over
50 per cent net profit growth despite softer markets, underpinned by our
resilient business model, record production following the planned Q2
turnaround, and strong cost discipline. Our cash generation underpins one of
the highest dividend yields on the ADX - and we reaffirm our intention to
increase Borouge’s dividend to 16.2 fils per share for 2025.”
Q3 record operational performance and
strong margins
Borouge’s improved profitability in the
quarter was driven by disciplined execution and operational resilience
following the successful completion of the Borouge 3 plant turnaround earlier
in the year, concluded ahead of schedule.
Following the turnaround, utilisation rates
returned quickly to above design capacity levels of 110 per cent for PE and 112
per cent for PP, supporting a 19 per cent increase in Sales volumes
quarter-on-quarter to 1.4 million tonnes.
Infrastructure and advanced packaging
segments continued to drive 36 per cent of total volumes reinforcing Borouge’s
differentiated market positioning.
The Asia Pacific region accounted for 61
per cent of sales, up from 57 per cent in the previous quarter.
9-Month (9M) performance supports increased
dividend and commitment to shareholder returns
Sales volumes totalled 3.8 million tonnes,
broadly flat year-on-year, reflecting strong utilisation rates and with record
quarterly production in Q3.
Borouge generated 9 million revenue of $4.17
billion in 2025 compared to $4.41 billion recorded for the same period in 2024
due to lower average selling prices, mitigated by increased production volumes.
Adjusted EBITDA stood at $1.57 billion,
while net profit reached $769 million, supported by disciplined cost control
and higher operating efficiency.
Borouge reaffirmed its FY2025 dividend
intention of 16.2 fils per share, which is expected to be maintained by Borouge
Group International, when launched, through to at least 2030, with upside
potential from an intended 90 per cent dividend payout ratio of net profit,
subject to relevant approvals.
The company continues to execute its share
buyback programme, with over 158 million shares repurchased by the end of Q3,
reflecting strong confidence in its long-term outlook.
Unlocking innovation, shareholder growth
and value
Borouge continues to advance its growth
projects. The Borouge 4 expansion project is over 90 per cent complete, with
the first plant expected to start to come online by the end of this year.
Once fully operational, the project will
add 1.4 million tonnes of annual capacity and significantly enhance Borouge’s
earnings power and market reach.
It
would also serve as a core asset within Borouge Group International, to which
it is expected to be transferred at cost, upon completion.
Expanding its innovation pipeline to drive
value generation, the company reintroduced an enhanced version of its BorSafe
products, a next-generation PE100-RC pipe grade, earning ‘New Product of the
Year’ at the Asian Oil and Gas awards.
In the advanced packaging sector, the
company introduced a block polypropylene (PP) Borstar grade that enables up to
50 per cent post-consumer recycled content, reflecting Borouge’s focus on
circular, high-performance solutions.
Borouge has delivered $477 million in
year-to-date value through its AI, Digitalisation and Technology (AIDT)
programme, and is targeting $575 million in value generation for 2025.
The company is also collaborating with
Yokogawa and Honeywell to conduct a proof-of-concept for AI-powered autonomous
control room operations at its Ruwais facility in Abu Dhabi and is set to
deliver the petrochemical industry’s first AI-driven control room.
At the inaugural Adnoc Investor Majlis held
on 8 October, transaction updates regarding the proposed creation of Borouge
Group International were provided by Adnoc, including:
