emirates7 - Borouge Plc has announced a strong net profit of $281 million for the first quarter of 2025, fueled by record production in March, higher sales volumes, and continued cost efficiency.
Operationally, the company maintained strong momentum, with production volumes increasing by 7% year-on-year. Asset reliability remained high at 94.4%, while utilisation rates reached 101% for polyethylene and 98% for polypropylene, reflecting Borouge’s robust operational capabilities.
Strong demand across Asia Pacific, the Middle East, and Africa for premium product segments led to a 10% year-on-year rise in total sales volumes, reaching 1.25 million tonnes. This included 8% growth in polyethylene and 13% in polypropylene volumes.
Borouge’s high-quality, differentiated materials commanded premium pricing, with average prices of $224 for polyethylene and $154 for polypropylene—well above the company’s long-term guidance. These products cater to key sectors such as infrastructure, energy, agriculture, advanced packaging, and healthcare.
CEO Hazeem Sultan Al Suwaidi emphasized that Borouge is on a rapid growth path, supported by its resilience and operational strength. He reiterated the company’s commitment to delivering shareholder value, highlighting plans to raise the 2025 dividend to 16.2 fils per share—an amount intended to be the minimum payout through 2030 under the newly proposed Borouge Group International structure.
Borouge’s solid performance paves the way for its planned merger with Borealis and acquisition of Nova Chemicals. This strategic move aims to Borouge Group International, a $60 billion global petrochemical powerhouse. The deal, pending regulatory approval, is expected to close in Q1 2026 and is designed to generate strong dividends and significant near-term growth.
In terms of financials, Q1 2025 revenue rose 9% year-on-year to $1.42 billion, driven by higher sales volumes and average prices. The company’s energy and infrastructure solutions made up 38% of total sales during the quarter. Polyethylene and polypropylene prices each saw a 2% increase from the previous quarter.
Borouge continued to focus on cost efficiency, reducing sales and distribution expenses by 6% year-on-year. This discipline is part of its Value Enhancement Programme, which yielded $607 million in savings in 2023 and contributed to a top-tier EBITDA margin of 40% for Q1 2025.
At its AGM on April 7, 2025, shareholders approved a final 2024 dividend of $650 million, paid out on April 28. This brought the total 2024 dividend to $1.3 billion (15.88 fils per share), raising the total payout since Borouge’s 2022 IPO to $3.58 billion.
Operationally, the company maintained strong momentum, with production volumes increasing by 7% year-on-year. Asset reliability remained high at 94.4%, while utilisation rates reached 101% for polyethylene and 98% for polypropylene, reflecting Borouge’s robust operational capabilities.
Strong demand across Asia Pacific, the Middle East, and Africa for premium product segments led to a 10% year-on-year rise in total sales volumes, reaching 1.25 million tonnes. This included 8% growth in polyethylene and 13% in polypropylene volumes.
Borouge’s high-quality, differentiated materials commanded premium pricing, with average prices of $224 for polyethylene and $154 for polypropylene—well above the company’s long-term guidance. These products cater to key sectors such as infrastructure, energy, agriculture, advanced packaging, and healthcare.
CEO Hazeem Sultan Al Suwaidi emphasized that Borouge is on a rapid growth path, supported by its resilience and operational strength. He reiterated the company’s commitment to delivering shareholder value, highlighting plans to raise the 2025 dividend to 16.2 fils per share—an amount intended to be the minimum payout through 2030 under the newly proposed Borouge Group International structure.
Borouge’s solid performance paves the way for its planned merger with Borealis and acquisition of Nova Chemicals. This strategic move aims to Borouge Group International, a $60 billion global petrochemical powerhouse. The deal, pending regulatory approval, is expected to close in Q1 2026 and is designed to generate strong dividends and significant near-term growth.
In terms of financials, Q1 2025 revenue rose 9% year-on-year to $1.42 billion, driven by higher sales volumes and average prices. The company’s energy and infrastructure solutions made up 38% of total sales during the quarter. Polyethylene and polypropylene prices each saw a 2% increase from the previous quarter.
Borouge continued to focus on cost efficiency, reducing sales and distribution expenses by 6% year-on-year. This discipline is part of its Value Enhancement Programme, which yielded $607 million in savings in 2023 and contributed to a top-tier EBITDA margin of 40% for Q1 2025.
At its AGM on April 7, 2025, shareholders approved a final 2024 dividend of $650 million, paid out on April 28. This brought the total 2024 dividend to $1.3 billion (15.88 fils per share), raising the total payout since Borouge’s 2022 IPO to $3.58 billion.