Abu Dhabi petrochemical, technology firms post strong first- half profits

Borouge says its net income increased 2.5 per cent to $853 million; Multiply Group declares Dh462 million in net profit; Response Plus Holding posts a net profit of Dh20.6 million



Borouge saw overall production capacity growth of 6.9 per cent year-on-year basis in the first half of 2022, as the ramp-up of the new PP5 plant and the turnaround of Borouge 1 in Q1 were completed. — File photo
Borouge saw overall production capacity growth of 6.9 per cent year-on-year basis in the first half of 2022, as the ramp-up of the new PP5 plant and the turnaround of Borouge 1 in Q1 were completed. — File photo
by

Waheed Abbas

Published: Thu 28 Jul 2022, 5:37 PM

Last updated: Fri 29 Jul 2022, 12:02 PM

Abu Dhabi-based petrochemical and technology companies on Thursday reported strong results for the first half of 2022.

Borouge, a petrochemical company, said its net income increased 2.5 per cent to $853 million while the adjusted Ebitda increased 1.7 per cent to $1.512 billion.

It announced a 16.4 per cent increase in revenue to $3.46 billion for H1 2022, versus the same period last year, driven by sales volume growth.

In the first half of 2022, Borouge saw overall production capacity growth of 6.9 per cent year-on-year (YoY) basis as the ramp-up of the new PP5 plant and the turnaround of Borouge 1 in Q1 were completed, helping drive an 8.6 per cent YoY growth in overall sales volumes.

June 2022 saw the strongest ever sales volumes achieved in a single month, with an increasing proportion of products sold into the infrastructure solutions market.

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Adnoc managing director and group CEO, and chairman of Borouge, said Borouge is central to delivering Adnoc’s ambitious Downstream and Industrial growth strategy and is poised for robust future growth, benefitting from the global boom in the petrochemicals sector.

"ADNOC, alongside its long-standing partner Borealis, will remain a committed, long-term majority shareholder in Borouge as the company continues on its exciting growth trajectory while delivering exceptional value and superior shareholder returns,” he said.

Hazeem Sultan Al Suwaidi, CEO of Borouge, said the company has delivered significant sales volumes growth during the first half of 2022 and continue to achieve strong premia above benchmark pricing, reflecting our value-added, differentiated products and innovative solutions that have a positive impact on society.

"We are very optimistic regarding the company’s future growth, and we remain committed to delivering exceptional value and returning an attractive dividend to our shareholders,” Al Suwaidi said.

Multiply Group earnings surge

Multiply Group, a technology-focused holding company, announced Dh462 million in net profit for the first half of 2022. The group recorded revenue of Dh507 million in the first half of 2022.

The group has a strong liquidity position, with Dh3.24 billion in cash and bank balances and negligible debt. This will allow Multiply Group to pursue attractive targets globally and ensure an efficient deployment of capital, striking the balance between steady companies that generate recurring income and high-growth businesses.

Based on the group’s strong operating performance, the current growth of the subsidiaries, and a strong pipeline of potential investments, Multiply Group expects its profitability to significantly accelerate during the rest of 2022.

Samia Bouazza, CEO and managing director of Multiply Group, said Multiply Group saw strong profitability throughout the first half of 2022 as our subsidiaries continued to register robust growth. Despite the ongoing headwinds, we see remarkable resilience across our portfolio.

"Our outlook for the rest of the year is very positive, and we expect our profitability to accelerate as we focus on two key areas of growth," she said.

Response Plus Holding focus on expansion

Response Plus Holding, a subsidiary of ADX-listed Alpha Dhabi, has achieved a net profit of Dh20.6 million in the first half of 2022, compared to Dh12.5 million during the same period in 2021.

It achieved Dh162.6 million in revenue in first half of 2022 compared to Dh70.1 million achieved during the same period of last year. Total assets at the end of June 2022 stood at Dh323.7 million.

The group is focused on expanding its footprints in KSA, India and Egypt, towards which significant investments and advancements have been made in the current year. It is in the process of setting up an occupational health centre in Damman (KSA), establishing a training centre in Riyadh, and imminently commencing medical training, global patient transfer, and operation of remote site services in India, for which a new subsidiary was set up in Q2 2022.

Major Tom Louis, CEO of Response Plus Holding, said the company has sustained its financial growth trajectory, which is well supported by strong second-quarter results.

"While external socioeconomic factors continue to impact the market dynamics, we remain committed to supporting our clients to navigate these challenges, which was reflected in our Q2 performance," he said. "We remain excited about our growth prospects, with strong foundations laid down in the new geographies of KSA, India, and Egypt over the past 12 months, allowing us to scale up and achieve continued sustainable revenue and profit growth in the years to come,” he said.

— waheedabbas@khaleejtimes.com


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