Borouge surges in Q3 with record production and 52% profit growth

Borouge Plc oN Wednesday reported a stellar third quarter, posting a 52 per cent quarter-on-quarter increase in net profit to $295 million, driven by record production, strong sales, and disciplined cost management. The performance exceeded market expectations and reaffirmed the company’s position as a global leader in polyolefins.

The petrochemicals giant, listed on the Abu Dhabi Securities Exchange, also delivered an adjusted earnings before interest, taxes, amortisation and depreciation (Ebitda) of $565 million, reflecting a best-in-class margin of 39 per cent, up from 34 per cent in Q2. This was achieved despite a decline in benchmark prices, with Borouge maintaining premium pricing for its differentiated polyethylene (PE) and polypropylene (PP) products — averaging $233 per tonne and $142 per tonne respectively over the first nine months of 2025.

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CEO Hazeem Sultan Al Suwaidi attributed the robust results to the company’s resilient business model and operational excellence. “Our exceptional Q3 results reinforce Borouge’s position as the world’s most profitable polyolefins company,” he said. “We delivered over 50 per cent net profit growth despite softer markets, underpinned by record production and strong cost discipline.”

Following a successful and ahead-of-schedule turnaround of its Borouge 3 plant in Q2, the company ramped up utilisation rates to 110 per cent for PE and 112 per cent for PP. This enabled a 19 per cent increase in quarterly sales volumes, reaching 1.4 million tonnes. The Asia Pacific region remained a key growth driver, accounting for 61 per cent of total sales, up from 57 per cent in the previous quarter.

For the nine-month period ending September 2025, Borouge reported revenues of $4.17 billion, slightly down from $4.41 billion in the same period last year due to lower average selling prices. However, net profit rose to $769 million, supported by operational efficiency and cost control.

The company reaffirmed its full-year dividend intention of 16.2 fils per share, with the second-half payout expected in April 2026. Borouge also continued its share buyback programme, repurchasing over 157.5 million shares by the end of Q3 — a move reflecting strong confidence in its long-term growth prospects.

Looking ahead, Borouge is nearing completion of its Borouge 4 expansion project, which is now over 90 per cent complete. The first plant is expected to come online by year-end, adding 1.4 million tonnes of annual capacity and significantly boosting earnings potential. The project is set to become a core asset of the proposed Borouge Group International (BGI), which is on track for launch in Q1 2026.

Innovation remains central to Borouge’s strategy. The company recently reintroduced its enhanced BorSafe PE100-RC pipe grade, which won ‘New Product of the Year’ at the Asian Oil and Gas awards. In advanced packaging, Borouge unveiled a new Borstar PP grade that supports up to 50 per cent post-consumer recycled content, reinforcing its commitment to circular and sustainable solutions.

Borouge’s AI, Digitalisation and Technology (AIDT) programme has already delivered $477 million in value this year, with a target of $575 million for 2025. The company is also pioneering AI-powered autonomous control room operations at its Ruwais facility, in collaboration with Yokogawa and Honeywell.

With strong fundamentals, expanding capacity, and a focus on innovation, Borouge is well-positioned to capitalise on improving market dynamics and deliver sustained value to shareholders.

Somshankar Bandyopadhyay

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somshankar@khaleejtimes.com

Somshankar Bandyopadhyay is a News Editor with close to three decades of experience. Currently, he manages the business section, ensuring that the top economic and business news of the day reaches its readers.