Borouge profit rises to $273m despite revenue fall

Petrochemicals major Borouge said its net profit for the first quarter of 2024 rose 37 percent to $273 million amid stronger price premium on high-value products.

The Abu Dhabi-listed company said revenue fell 6 percent year on year to $1.3 billion on planned feedstock-related operational maintenance.

Average sales prices increased quarter on quarter by 4 percent for polyethylene and 6 percent for polypropylene, compared to a 1 percent rise in global benchmark prices for both products.

As a result, the premium for polyethylene and polypropylene reached $222 and $162 per tonne, respectively, in the first quarter, exceeding the company’s guidance of $200 and $140 per tonne, respectively.

Borouge benefits from a major competitive advantage in key growth markets in Asia Pacific, the Middle East and Africa due to its products in sectors such as infrastructure, energy, agriculture, speciality packaging and healthcare.

The petrochemical company plans to maintain the 2024 dividend at $1.3 billion.

• Borouge to treble production despite lacklustre demand
• Borouge secures two new $15m contracts from UAE firms
• Borouge’s 2023 profit falls 29% on produce price drop

“Borouge is now entering a transformational phase in our growth journey,” said CEO Hazeem Sultan Al Suwaidi.

Work is continuing on Borouge 4 production facility, which is over 60 percent completed, he said, adding that the plant will raise annual capacity by 28 percent to 6.4 million tonnes.

Source: Trade Finance