Borouge Reports $193 Million Net Profit For Q2 2025 Amid Successful Turnaround Efforts

Borouge Plc, a prominent petrochemicals firm, recently reported a net profit of $193 million for Q2 2025, surpassing market forecasts. This achievement reflects the successful execution of the Borouge 3 turnaround, which was completed safely and ahead of schedule. The company maintained robust margins and healthy cash flow through effective cost management and sustained high-value product pricing.

In Q2 2025, Borouge generated revenue of $1.31 billion, slightly lower than the $1.5 billion recorded in Q2 2024. This decrease accounts for the planned maintenance at Borouge 3. Despite this, sales volumes remained stable at 1.1 million tonnes, supported by inventory sales of approximately 140 kilotonnes. High-value products made up 41% of total volumes.

The company's adjusted EBITDA for the second quarter reached $440 million, reflecting performance above expectations during the maintenance period. Borouge maintained an EBITDA margin of 34%, aided by product mix optimisation during this major maintenance event. Capital expenditure in Q2 was $130 million, with a net debt-to-EBITDA ratio of 1.0x.

Borouge plans to increase its dividend to 16.2 fils per share for 2025, with a proposed interim dividend of 8.1 fils per share payable in September. This increase is part of their commitment to delivering shareholder value and is expected to be the minimum payout until at least 2030 under Borouge Group International.

Since its listing in 2022, Borouge has distributed $3.58 billion in dividends to shareholders. Following the proposed Borouge Group International transaction, the new entity aims to maintain an annual minimum dividend of 16.2 fils per share through at least 2030.

Market Position and Strategic Initiatives

Despite softer market conditions, Borouge sustained premium pricing for polyethylene (PE) and polypropylene (PP), achieving $249 per tonne for PE and $141 per tonne for PP. This was possible due to their ability to reallocate volumes effectively and maintain a differentiated portfolio.

The company continues its AI, Digitalisation and Technology (AIDT) programme, which has delivered $307 million in value so far this year. A significant milestone was launching an AI-powered control room project with Honeywell at their Ruwais facilities.

For H1 2025, revenue stood at $2.72 billion compared to $2.81 billion in H1 2024. Adjusted EBITDA reached $1 billion versus $1.18 billion in the previous year’s period, supported by strong pricing premia and cost discipline.

Borouge's CEO Hazeem Sultan Al Suwaidi stated that their results are driven by disciplined execution and strong cash flows following the successful completion of their largest turnaround yet at Borouge 3.

The company also executed a share buyback approved at its AGM in April, purchasing 125 million shares by the end of Q2 as per ADX regulatory requirements.

Borouge's operational resilience is evident as sales volumes for H1 totalled 2.39 million tonnes, only a slight decrease from last year despite challenging conditions.

The proposed interim dividend reflects part of their plan to raise the full-year dividend to 16.2 fils per share from last year's 15.88 fils, offering an estimated yield of 6.1% on ADX.

This strategic approach highlights Borouge's commitment to enhancing shareholder returns while maintaining financial flexibility and operational efficiency amidst evolving market dynamics.

With inputs from WAM