Borouge, a leading petrochemicals company, reported a net profit of $193 million for the second quarter of 2025, surpassing market expectations.

 

This performance reflects effective execution of the Borouge 3 turnaround, with the company maintaining solid margins and healthy cash flow due to efficient cost management and strong pricing for its high-value products.

 

The Borouge 3 turnaround was completed safely, within budget, and eight days ahead of schedule.

 

It was the largest turnaround to date, with a 15 percent reduction in downtime, showcasing the efficiency of the company's planning and execution teams.

 

These regular six-year maintenance turnarounds are crucial for servicing Borouge’s assets and ensuring high utilisation and production levels.

 

Adjusted EBITDA for the quarter was $440 million, exceeding expectations during the Borouge 3 maintenance.

 

The company maintained a healthy EBITDA margin of 34 percent, supported by product mix optimisation during this scheduled maintenance.

 

Hazeem  Al Suwaidi, Chief Executive Officer of Borouge, commented:“Borouge’s results are underpinned by healthy cash flows, disciplined execution and strong pricing premia, following the successful completion of the planned Borouge 3 turnaround, our largest to date. Reflecting our commitment to delivering shareholder value, we reaffirm our intention to increase Borouge’s dividend to 16.2 fils per share for 2025 and our proposed H1 2025 dividend of 8.1 fils per share to be paid in September. The increased dividend is also expected to serve as the intended minimum share payout to at least 2030 under Borouge Group International.”

 

Strong pricing for polyethylene (PE) and polypropylene (PP) also contributed positively, with PE achieving $249 per tonne and PP $141 per tonne, both above management's guidance.

 

Borouge reported revenue of $1.31 billion in Q2 2025, down from $1.5 billion in Q2 2024, primarily due to the Borouge 3 maintenance.

 

Sales volumes were stable at 1.1 million tonnes, aided by around 140 kilotonnes of inventory sales.

 

High-value products accounted for 41 percent of total volumes, with strong demand in infrastructure and advanced packaging.

 

Capital expenditure for the quarter was $130 million, and Borouge ended the period with a net debt-to-EBITDA ratio of 1.0x, indicating a strong balance sheet.

 

For the first half of the year, revenue was $2.72 billion compared to $2.81 billion in H1 2024.

 

Adjusted EBITDA reached $1.0 billion, supported by pricing, cost control, and inventory sales, with sales volumes totaling 2.39 million tonnes, a slight decline of 2 percent year-on-year.

 

The company has proposed an interim dividend of 8.1 fils per share for the first half of 2025, pending shareholder approval in August.

 

This payout aligns with the plan to increase the total 2025 dividend to 16.2 fils per share, up from 15.88 fils in 2024, which would yield approximately 6.1 percent at the current share price.

 

Since its listing in 2022, Borouge has distributed $3.58 billion in dividends.

 

Following the proposed Borouge Group International transaction, the new entity aims to maintain an annual minimum dividend of 16.2 fils per share through at least 2030.

 

Borouge is also executing a share buyback approved at its AGM in April, having purchased 125 million shares by the end of Q2, reflecting confidence in its future. A

 

dditionally, the company is advancing its AI, Digitalisation, and Technology (AIDT) program, which has generated $307 million in value this year, including a proof-of-concept project with Honeywell for an AI-powered control room at its Ruwais facilities. -OGN / TradeArabia News Service