Borouge Achieves $769 Million Net Profit In First Nine Months Of 2025 Driven By Strong Sales And Production

Borouge Plc reported a significant 52% increase in net profit for the third quarter of 2025, reaching $295 million. This surpassed market expectations, driven by record production levels, robust sales, and strong margins following the successful turnaround of the Borouge 3 plant in the second quarter. The company's adjusted EBITDA rose to $565 million, reflecting an industry-leading margin of 39%, up from 34% in the previous quarter.

Despite a decline in benchmark prices compared to the previous quarter, Borouge maintained polyethylene (PE) prices at $233 per tonne and polypropylene (PP) at $142 per tonne for the first nine months of 2025. These figures exceeded guidance and highlighted the strength of Borouge's innovative product offerings. For this period, Borouge generated revenue of $4.17 billion, compared to $4.41 billion in the same timeframe in 2024, due to lower average selling prices offset by increased production volumes.

The company's adjusted EBITDA for the first nine months stood at $1.57 billion, with a net profit of $769 million. This performance was supported by disciplined cost management and improved operating efficiency. "Our exceptional Q3 results reinforce Borouge’s position as the world’s most profitable polyolefins company," stated Hazeem Sultan Al Suwaidi, CEO of Borouge.

Al Suwaidi also mentioned that Borouge's cash generation supports one of the highest dividend yields on the Abu Dhabi Securities Exchange (ADX). The company plans to increase its dividend to 16.2 fils per share for 2025. This decision underscores Borouge's commitment to delivering value to its shareholders.

Borouge is making progress on its growth projects, with the Borouge 4 expansion project over 90% complete. The first plant is expected to begin operations by year-end. Once fully operational, this project will add 1.4 million tonnes of annual capacity, significantly boosting Borouge’s earnings potential and market presence.

This expansion will become a key asset within Borouge Group International and is anticipated to be transferred at cost upon completion. Additionally, Borouge has achieved $477 million in value through its AI, Digitalisation and Technology (AIDT) programme so far this year and aims for $575 million in value generation for 2025.

Innovative Collaborations

The company is collaborating with Yokogawa and Honeywell on a proof-of-concept for AI-powered autonomous control room operations at its Ruwais facility in Abu Dhabi. This initiative aims to deliver the petrochemical industry’s first AI-driven control room, showcasing Borouge's commitment to innovation and technological advancement.

Borouge's strategic initiatives and financial discipline have positioned it strongly within the polyolefins sector. With ongoing projects like Borouge 4 nearing completion and advancements in AI technology underway, the company is poised for continued growth and enhanced market reach.

With inputs from WAM