United Arab Emirates · Delayed Price · Currency is AED Borouge Earnings Call Transcripts
Fiscal Year 2026
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Q3 volumes and operations recovered, but lower prices and elevated costs pressured margins. Feedstock near 90%, firmer prices and easing logistics support expectations for the strongest quarter of FY 2026.
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Q2 saw resilient financial performance despite asset damage and regional disruptions, with revenue up 20% quarter-on-quarter and net profit up 23%. Record price premia and alternative logistics routes supported results, while full production was restored by end of June.
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Q1 2026 saw resilient operational and financial results despite regional disruptions, with strong margins, robust cash flow, and effective logistics rerouting. Elevated polyolefin prices and ongoing supply shortages are expected to support performance in Q2.
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Operational resilience maintained with no material impact from geopolitical events. Asset usage agreement for Borouge 4 expected to deliver $400 million net profit over three years, while strong investment-grade ratings and $15.4 billion in financing support strategic growth and integration plans.
Fiscal Year 2025
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Record production, sales, and profitability were achieved in 2025, with strong cash flow and industry-leading margins despite softer pricing. Strategic growth projects, innovation, and disciplined cost control position the company for continued outperformance and value creation.
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Q3 2025 saw record production, a 52% net profit increase quarter-on-quarter, and a 39% EBITDA margin, despite softer benchmark prices. High-value product sales, cost discipline, and innovation supported strong cash flow and reaffirmed dividend guidance.
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Q2 2025 saw strong net profit and operational execution despite a major turnaround, with robust sales in high-value segments and continued cost discipline. Market conditions remain challenging, but high utilization and dividend guidance are expected for H2.
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Net profit rose 3% year-on-year to $281 million in Q1 2025, with revenue up 9% and strong EBITDA margins sustained. Dividend guidance was raised, a share buyback launched, and the Borouge Group International merger remains on track for Q1 2026, targeting global growth and synergies.
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A transformational merger will create a top-four global polyolefins producer, combining Borouge, Borealis, and Nova Chemicals under Borouge Group International. The new entity targets over $7 billion EBITDA, $500 million in annual synergies, and a robust, accretive dividend policy, with balanced global operations and strong innovation capabilities.
Fiscal Year 2024
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Record production and sales volumes in 2024 drove a 24% net profit increase and robust cash flow, supporting a $1.3 billion dividend. 2025 will see higher CapEx due to major maintenance, with sales and pricing expected stable in Q1.
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Record Q2 production and sales drove a 33% year-on-year net profit increase, with strong EBITDA margins and robust cash flow. Strategic project execution and cost discipline underpin continued high dividends and growth, while Borouge 4 and China expansion progress on track.