Borouge UAE posts $281 million net profit in Q1 - Beacon

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Thursday, May 1, 2025

Borouge UAE posts $281 million net profit in Q1

Borouge PLC posts $281 million net profit in Q1
Borouge UAE 

 

Borouge UAE records net profit of AED 1.03 billion in the first quarter


Borouge PLC, the UAE-based petrochemical company, announced on Wednesday that it achieved significant net profits of AED 1.03 billion ($281 million) for the first quarter of 2025, driven by record monthly production in March, increased sales volumes, and continued cost management.


The company maintained its strong operational performance, with production volumes increasing by 7 percent year-on-year during the first quarter of 2025. The company continued to maintain its overall asset reliability ratio, reaching 94.4 percent by the end of the first quarter, while maintaining polyethylene utilization rates of 101 percent and polypropylene utilization rates of 98 percent, confirming the company's operational excellence and efficiency.


Demand for high-value product segments maintained its momentum during the first quarter of 2025 in key growth markets in Asia Pacific and the Middle East and Africa. Total sales volume increased by 10 percent year-on-year in the first quarter to 1.25 million tons, driven by strong growth of 8 percent in polyethylene sales and 13 percent in polypropylene sales volumes.


Borouge achieved strong premiums across its specialty and high-quality product portfolio. Average polyethylene and polypropylene prices exceeded management's expectations across economic cycles by $224 and $154 per ton, respectively.


These premiums highlight the significant value-add of Borouge's products, which play a pivotal role in supporting high-growth sectors such as infrastructure, energy, agriculture, advanced packaging, and healthcare.


Hazeem Sultan Al Suwaidi, CEO of Borouge, said that Borouge is well-positioned to continue achieving accelerated growth, especially after demonstrating remarkable resilience and operational excellence over the past two years. He noted that these achievements give the company strong confidence as it enters a new phase of qualitative growth with the Borouge International Group.


He pointed to the continued implementation of the company's strategy, which focuses primarily on creating and enhancing value for its shareholders. This is evident in Borouge's anticipated dividend increase to 16.2 fils per share for 2025, which will also represent the minimum expected dividend distributions until 2030 under the umbrella of the Borouge International Group.


The company's continued strong performance lays a solid foundation for the proposed merger between Borouge and Borealis and the acquisition of Nova Chemicals, creating the Borouge International Group, a leading global petrochemicals company valued at AED 220 billion (US$60 billion).


This new entity is planned to continue generating strong profits and significant growth in the near term. The group's formation is expected to be completed in the first quarter of 2026, subject to the necessary legal and regulatory approvals. In the first quarter of 2025, Borouge achieved 9 percent year-on-year revenue growth to AED 5.21 billion (US$1.42 billion), driven by higher average selling prices and increased sales volumes.


This strong performance underscores the growing demand for the company's premium energy and infrastructure solutions, which accounted for 38 percent of total sales volume during the quarter. Average polyethylene and polypropylene sales prices increased by 2 percent quarter-on-quarter.


The company continued to focus on cost control as a key priority, achieving a 6 percent year-on-year reduction in sales and distribution expenses. The company's cost management builds on its successful value creation program, which generated AED 2.22 billion (US$607 million) in 2023, contributing to a petrochemicals industry-leading EBITDA margin of 40 percent in the first quarter.


During the company's 2025 Annual General Meeting, held on April 7, shareholders approved a final dividend of AED 2.4 billion ($650 million) for 2024. The dividend was paid on April 28, 2025, bringing the total dividend payout for 2024 to AED 4.8 billion ($1.3 billion)—equivalent to 15.88 fils per share. This brings the total dividend payout to shareholders since the company's initial public offering in 2022 to AED 13.14 billion ($3.58 billion).

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