Borouge Achieves USD 1.24 Billion Net Profit In FY2024 With Record Production And Sales Volumes

Borouge Plc reported impressive financial results for 2024, with a 24% rise in net profit to $1.24 billion. This success was attributed to record production and sales volumes. The company is achieving growth by maintaining high productivity, utilising a robust international marketing network, and employing advanced technology to meet changing customer needs.

Through operational excellence, Borouge achieved record production of 5.2 million tonnes. This was supported by utilisation rates of 110% for polyethylene and 98% for polypropylene. Sales volumes also reached a peak of 5.3 million tonnes, thanks to strategic positioning in high-growth regions like Asia, the Middle East, and Africa.

The company's EBITDA margin stood at an impressive 41% for the year, significantly outperforming global peers. EBITDA increased by 14% year-on-year to $2.48 billion, driven by a 4% rise in revenue to $6 billion. These figures highlight Borouge's strong financial health amid industry challenges.

Hazeem Sultan Al Suwaidi, CEO of Borouge, stated, "Borouge has generated substantial earnings growth in 2024 while maintaining strong profitability at a time when the wider global industry has faced challenges." He also announced plans to maintain a $1.3 billion dividend for the 2025 financial year, equating to a current yield of 6.3%.

The Borouge 4 strategic expansion project aims to increase production capacity by nearly one-third and boost innovation capabilities. This initiative is expected to drive sales growth in key markets. Additionally, the company is implementing a comprehensive digital and AI transformation programme that is already improving productivity and will reshape operations in the coming years.

Borouge's success is further bolstered by its international network of 14 sales and marketing offices that foster strong customer relationships. This network plays a crucial role in supporting the company's presence in high-growth markets across various regions.

The company's focus on leveraging world-class technology allows it to innovate continuously and provide products that meet evolving customer demands. This approach not only enhances productivity but also positions Borouge as a leader in its industry.

As Borouge continues its journey of growth and innovation, it remains committed to delivering value to shareholders through strategic initiatives and maintaining strong profitability metrics compared to global peers.

With inputs from WAM