Borouge Reports Net Profit of $193 Million in Q2-2025

Borouge, a leading petrochemicals company providing innovative and differentiated polyolefins solutions, on Thursday reported a net profit of $193 million for the second quarter of 2025, exceeding market expectations.

The results reflect disciplined execution of the planned Borouge 3 turnaround, with the company maintaining strong margins and healthy cash generation on the back of effective cost management and sustained premia across its high-value product mix.

The Borouge 3 turnaround was successfully executed during the quarter, completed safely, within budget and delivered eight days ahead of schedule. As the largest and most complex turnaround to date, the company optimised downtime by 15%, reflecting the efficiency of company’s planning and execution teams. These planned, regular six-year maintenance turnarounds are essential to servicing Borouge’s world-class assets and maintaining high utilisation rates and production volumes.

Adjusted EBITDA for the second quarter was $440 million, reflecting performance above expectations during the planned Borouge 3 turnaround. Borouge maintained a healthy EBITDA margin of 34%, supported by product mix optimisation throughout a scheduled major maintenance event, Borouge said in a bourse filing with Abu Dhabi Securities Exchange (ADX) this morning.

Borouge also reported revenue of $1.31 billion in Q2 2025, compared to $1.5 billion in Q2 2024, taking into account the planned Borouge 3 maintenance, reflecting a quarter that balanced disciplined asset management with the company’s ongoing commitment to delivering value for shareholders.

Sales volumes totalled 1.1 million tonnes, broadly stable quarter-on-quarter, supported by approximately 140 kilo tonnes of inventory sales. High-value products continued to account for 41% of total volumes, with strong momentum in infrastructure and advanced packaging applications.

Selling Prices Declines

Average selling prices declined 1% q-o-q and 3% y-o-y, in line with broader market conditions. While PE prices held steady, PP saw a modest decline. Global benchmarks for PE and PP declined slightly over the same period. Despite this environment, Borouge sustained pricing discipline and continued to optimise its regional sales mix, with an increasing share allocated to Middle East and Borealis-linked markets offering higher netbacks.

Capital expenditure in Q2 amounted to $130 million. Borouge closed the quarter with a net debt-to-EBITDA ratio of 1.0x, maintaining a strong balance sheet and significant financial flexibility.

H1 Results

For the first half of the year, revenue stood at $2.72 billion compared to $2.81 billion in H1 2024. Adjusted EBITDA reached $1.0 billion versus $1.18 billion in the prior-year period, with margins supported by strong pricing premia, cost discipline and inventory sales. Sales volumes totalled 2.39 million tonnes, down just 2% year-on-year, reflecting Borouge’s operational resilience and agility.

Since its listing in 2022, Borouge has paid a total of $3.58 billion in dividends to shareholders. Upon completion of the proposed Borouge Group International transaction, the newly formed entity intends to maintain an annual minimum dividend of %0.044 per share up to at least 2030.

This represents a cumulative shareholder return of approximately 37% with a strong upside potential and a 90% dividend payout ratio of net profit.

Borouge 4 will add 1.4 MTs of annual production capacity once completed by the end of 2026 and is expected to significantly enhance Borouge’s earnings power and market reach. Borouge 4 will also serve as a core asset within the proposed Borouge Group International, to which it will be transferred at cost, unlocking substantial embedded value for shareholders.

Outlook

Borouge continues to focus on differentiated products in its core regions, supporting strong price premia and strong performance expected through the second half of the year. The company remains agile in allocating volumes to the best netback markets within its core regions.

With the planned turnaround now successfully concluded, it is well positioned to optimise production capacity and to take advantage of improved market dynamics as they emerge.