Borouge, an Abu Dhabi–based petrochemicals company, reported a resilient performance in Q1 2026 despite regional instability and logistics disruptions.
The company generated
revenue of $1.2 billion, with adjusted EBITDA of $343 million and net profit of
$156 million.
Production reached
1.21 million tonnes, operating at 98 per cent of nameplate capacity, reflecting strong
operational execution and efficiency.
Regional tensions
affecting the Strait of Hormuz disrupted logistics, but Borouge successfully
adapted by rerouting 61 per cent of March production through alternative channels.
Unsold volumes were
stored and positioned for sale in a stronger pricing environment. The company
also prioritised safety and asset integrity while maintaining continuity of
supply.
Hazeem Al
Suwaidi, Chief Executive Officer of Borouge , commented: “We would like to
recognise our people for their unwavering professionalism and commitment
despite significant challenges in the region. We delivered a resilient Q1 2026
performance, reflecting strong execution, operational excellence and continuous
cost discipline. Our business continuity plans have been tested and proven.
With global prices showing encouraging signs of recovery and as market
conditions improve, we are well positioned to translate this opportunity into
earnings, maintaining reliable supply for our customers, and continuing to
deliver sustainable value for our shareholders.”
An incident on April
5 at the Ruwais Industrial Area caused damage
from falling debris after air defence interception.
Some production lines
were temporarily suspended, but phased restarts have since restored most
capacity, with operations now ramping up again.
Market conditions were
favourable, with polyolefin prices rising 62 per cent in March due to global supply
shortages and strong demand for Borouge’s specialty products.
Although early-quarter pricing was lower, the
upward trend supported improved average selling prices, and the company
maintained price premiums over benchmarks.
Higher logistics costs
were absorbed through pricing strategies, preserving margins.
Borouge also continued
to enhance shareholder value. Shareholders approved $1.32 billion in dividends
for FY2025, with a final $658 million payment scheduled for May 2026.
A strategic agreement
with Adnoc and OMV grants Borouge operational control of the Borouge 4 project
with no upfront capital requirement, expected to add $400 million in cumulative
net profit over three years and deliver around 10 per cent annual earnings accretion
post ramp-up.
Digital transformation
initiatives contributed $143 million in value through AI, automation, and 3D
printing of spare parts, improving efficiency and reducing costs.
Finally, the formation
of Borouge International on March 30, 2026, created the world’s fourth-largest polyolefins
producer by capacity, enhancing global scale, diversification, and long-term
competitiveness while reinforcing shareholder return commitments. -OGN/TradeArabia News Service
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