Borouge Plc announced a 52 percent quarter-on-quarter (QoQ) increase in net profit to $295 million for the third quarter of 2025, surpassing market expectations. The robust performance was fueled by record production, strong sales, and resilient margins following the successful Borouge 3 plant turnaround in the previous quarter.
Adjusted EBITDA for Q3 rose to $565 million, representing an industry-leading 39 percent margin, up from 34 percent in Q2. This improvement reflects higher sales volumes, first-quartile operating costs, and strong quality pricing premia.
Although benchmark prices declined on a QoQ basis, Borouge achieved $233 per tonne for polyethylene (PE) and $142 per tonne for polypropylene (PP) during the first nine months of 2025—remaining above guidance and highlighting the strength of its differentiated and innovative product portfolio.
For the first nine months of 2025, Borouge reported revenue of $4.17 billion, compared to $4.41 billion in the same period of 2024. The decrease in average selling prices was partially offset by higher production volumes.
Adjusted EBITDA for the nine-month period reached $1.57 billion, while net profit stood at $769 million, supported by disciplined cost management and improved operating efficiency.
“Our exceptional Q3 results reinforce Borouge’s position as the world’s most profitable polyolefins company. We delivered over 50 percent net profit growth despite softer markets, underpinned by our resilient business model, record production following the planned Q2 turnaround, and strong cost discipline,” said Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge.
He added that the company’s cash generation underpins one of the highest dividend yields on the ADX, affirming Borouge’s intention to increase the dividend to 16.2 fils per share for 2025.
Borouge also continues to advance its major growth initiatives. The Borouge 4 expansion project is now over 90 percent complete, with the first plant expected to begin operations by the end of the year. Once fully operational, Borouge 4 will add 1.4 million tonnes of annual capacity, significantly strengthening the company’s earnings potential and market presence.
The project will serve as a key asset within Borouge Group International, to which it is expected to be transferred at cost upon completion.
Additionally, Borouge has generated $477 million in year-to-date value through its AI, Digitalisation and Technology (AIDT) programme and is targeting $575 million in value generation for 2025.
The company is collaborating with Yokogawa and Honeywell to conduct a proof-of-concept for AI-powered autonomous control room operations at its Ruwais facility in Abu Dhabi. This initiative is set to deliver the petrochemical industry’s first AI-driven control room.
(Inputs from WAM)
