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Borouge

Petrochemicals

Latest Borouge DevelopmentsAI Insights

Borouge plans to treble production capacity at its Ruwais polyolefin complex, which will be the largest single-site producer of polyolefins. This comes amid forecasts of an oversupply in the petrochemical sector. Global petrochemical capacity is anticipated to exceed demand by approximately 218 million tonnes annually from 2023 to 20251.

In the first quarter of 2024, Borouge's net profit rose 37 percent to $273 million, despite a 6 percent decline in revenue to $1.3 billion. The company attributes this to a stronger price premium on high-value products2. For the first half of 2024, Borouge reported a net profit increase of 35 percent year on year to $581 million. Borouge's sales volume in Asia Pacific and the Middle East accounted for most of its revenue3.

Borouge's net earnings for 2024 increased by 24 percent to $1.2 billion, benefitting from record production and sales. The company also plans to increase production capacity by 28 percent through the Borouge 4 project, hoping to enhance its market position and drive sales growth5. As part of its expansion strategy, Borouge is advancing plans for a joint venture in China and considering opportunities in the Asia Pacific region4.

Borouge Overview

Borouge, the Abu Dhabi-listed and headquartered petrochemicals, plastics and polymer manufacturer was established in 1998.

It is owned by Abu Dhabi’s Adnoc, with a 54 per cent stake, and Austrian plastics maker Borealis Group, with a 36 per cent stake.

In 2022, a 10 per cent stake in the company was listed on the ADX, raising $2 billion.

Employing more than 6,000 people and operating in both Abu Dhabi and Singapore, Borouge produces a range of products for the Middle East, African and Asian markets.

Among these are petrochemicals, polymers, fittings, pipes, cable coverings, wires and packaging for consumer, industrial, medical and mobility use.

In July 2024 Borouge’s CEO said its priority was to “drive accelerated growth through capacity expansion, increased productivity and a focus on high-value customer segments”.

Borouge News

Borouge's sales volume of polyethylene and polypropylene, used in plastics and packaging, increased

Borouge net profit increases to $281m for first quarter

UAE petrochemical company Borouge reported a rise in profit for the first quarter, driven by higher production and revenue. Net profit for the three months to March rose to $281 million, on the back of an increase in sales volumes and cost reduction, the company said in a statement. Production volumes rose 7 percent year […]

Borouge, backed by Abu Dhabi National Oil Company (Adnoc) and Austria’s OMV, has awarded two contracts for the expansion

UAE’s Borouge to expand its production capacity 

UAE petrochemical company Borouge, a specialist in polyethylene and polypropylene, has unveiled expansion plans to increase annual production capacity to more than 6.6 million tonnes by 2028. The expansion is expected to contribute $165-$200 million in earnings before interest, tax and depreciation, the company said in a statement.  Borouge, backed by Abu Dhabi National Oil […]

Shell has about 10 percent of South Africa’s fuel retail market.

Adnoc on shortlist to buy Shell South Africa fuel stations

Abu Dhabi National Oil Company (Adnoc) has been shortlisted to acquire Shell’s fuel stations and other downstream assets in South Africa for as much as $1 billion. Shell’s portfolio in South Africa includes about 600 fuel stations and local trading operations, Bloomberg reported, without identifying its sources. Shell has appointed Rothschild to run the sale […]

Operators at the Borouge facility at Ruwais. The company is increasing its dividend

Borouge hikes dividend despite economic turmoil

Emirati petrochemicals company Borouge will launch a share buyback programme and increase its dividend payout as it pushes ahead with global expansion, despite mounting trade tensions and sluggish demand. Shareholders at the company’s annual general meeting on Monday approved a final dividend of $650 million for 2024, bringing the full-year total to $1.3 billion, or […]

Emerging market fund managers 'allocate more time and money to bigger markets like India and China' than Dubai or Saudi Arabia, says one expert

Foreign investors still underweight on Gulf stocks

International investors have pumped more than $60 billion into Gulf stocks over the past five years but their share of ownership is still relatively low, putting into question the success of GCC states’ economic diversification policies. Governments in the world’s largest oil-producing region have long sought to increase foreign direct investment into their economies and […]

Borouge chairman Sultan Al Jaber visits the Borouge 4 project, which will increase the company's petrochemicals production by almost one third

Gulf oil companies turn up petrochemicals investment

Gulf national oil companies (NOCs) are increasingly focusing their investment attention on petrochemicals as they seek to move up the value chain and as global demand growth for crude slows, experts say. The Paris-based International Energy Agency (IEA) expects the petrochemical industry to account for one third of global oil demand growth by 2030 and […]

Shareholders in Borouge are due to vote on a proposed dividend and 2.5 percent share buyback on April 7

Borouge proposes share buyback after merger stock slide

Abu Dhabi petrochemicals company Borouge will seek shareholder approval to buy back up to 2.5 percent of its shares, it said on Monday, after its share price plunged on this month’s news of its merger deal with Austria’s Borealis.  Borouge’s majority shareholder Abu Dhabi National Oil Company (Adnoc) and Austria’s OMV said they had agreed to merge […]

UAE President Sheikh Mohamed bin Zayed Al Nahyan presides over the annual meeting of the Adnoc board of directors in November 2024

Adnoc targets foreign listing of investment arm XRG

Abu Dhabi National Oil Company (Adnoc) is considering listing its international investment arm XRG on an exchange outside of the UAE, three people with knowledge of the matter said. This could potentially create one of the largest listed energy companies in the world. The discussions to list a minority stake of XRG, which was established late […]

BGI will acquire Canada-headquartered Nova Chemicals Corporation from Abu Dhabi’s sovereign wealth fund Mubadala for $13.4 billion

Adnoc and OMV seal deal for $60bn chemicals JV

Abu Dhabi National Oil Company (Adnoc) and Austria’s energy group OMV have agreed to merge their polyolefin operations to form a $60 billion joint venture. Borouge Group International (BGI) will be the world’s fourth largest by nameplate production capacity, the UAE company said. BGI will acquire Canada-headquartered Nova Chemicals Corporation from Abu Dhabi’s sovereign wealth fund […]

Adnoc's new acquisitions in the petrochemicals sector are part of its attempts to diversify

Adnoc’s big bet on petrochemicals

Pay attention at the back. Earlier this week Abu Dhabi-listed Fertiglobe reported net profits of $160m for 2024, down by more than half on 2023 because of lower revenues. Meanwhile, net earnings at Borouge, another of Abu Dhabi’s listed petrochemicals ventures, jumped by nearly a quarter year-on-year to $1.2 billion. Borouge reported record production and sales. What […]