Borouge Plc, the UAE-based polyolefins major, posted a second-quarter net profit of $193 million in 2025, outperforming market forecasts despite a scheduled turnaround at its Borouge 3 facility. The company maintained healthy margins and reaffirmed plans to increase its full-year dividend, signaling strong financial health and investor confidence.
Second-quarter adjusted EBITDA came in at $440 million, translating to a robust 34% margin. This performance was driven by high-value product sales, effective cost control, and premium pricing for polyethylene (PE) and polypropylene (PP), with average premia of $249/tonne and $141/tonne, respectively.
Total sales volumes reached 1.1 million tonnes, with 41% coming from infrastructure-grade applications. Revenue for the quarter stood at $1.31 billion, reflecting the planned impact of Borouge 3 maintenance, which was completed eight days ahead of schedule and within budget.
“Our operational excellence and premium product mix have enabled us to outperform during a complex quarter,” said CEO Hazeem Sultan Al Suwaidi. “We are reaffirming our commitment to shareholder returns, targeting a full-year 2025 dividend of 16.2 fils per share.”
For the first half of 2025, Borouge generated $2.72 billion in revenue and $1.0 billion in adjusted EBITDA. A proposed interim dividend of 8.1 fils per share will be paid in September, part of the broader dividend strategy aimed at maintaining a minimum annual payout until at least 2030.
The company’s financial discipline is underscored by a low net debt-to-EBITDA ratio of 1.0x and a Q2 capex of $130 million. Borouge has also repurchased 125 million shares under its ongoing buyback program.
Looking ahead, the company expects to commission Borouge 4 by end-2026, adding 1.4 million tonnes of annual capacity. The expansion leverages Borstar® 3G technology and will serve as a core asset for Borouge Group International, with a proposed transaction on track for Q1 2026 closure.
Amid soft global market conditions, Borouge’s agility in optimizing its regional sales mix and maintaining pricing discipline underpins its resilient outlook. Strategic AI-driven initiatives, including an AI-powered control room in collaboration with Honeywell, and new product development in healthcare and sustainable packaging further reinforce its innovation-led growth strategy.
Borouge, a joint venture between ADNOC (54%) and Austria’s Borealis (36%), remains a key player in the global polyolefins market, supplying over 90 countries across Asia, the Middle East, and Africa.
