Abu Dhabi’s Borouge revenue rises 13.5% to $5.13bn

WAM

Abu Dhabi-based petrochemicals major Borouge Plc announced a 13.5 percent increase year-on-year in revenue to $5.13 billion for the nine months of 2022.

The increase in revenue over the nine months was driven by an 11.9 percent increase in total sales volumes, with polypropylene (PP) volumes up 14.7 percent, UAE state-owned news agency WAM reported.

Overall production capacity grew by 7.9 percent year-on-year as the ramp-up of the PP5 plant was completed. PP5 commenced production of more differentiated and premium grades in the third quarter.

Adjusted EBITDA declined by 3.6 percent to $2.10 billion due to globally elevated logistics and material costs.

Revenue increased eight percent year-on-year to $1.67 billion in the third quarter of 2022, driven by sales volume growth. Total sales volume in the three months increased 18.1 percent year-on-year to 1,341 kilotonnes (kt).

Borouge’s strong volume growth partially offset the decline in its average selling prices, which were impacted by global supply and pricing pressures.

For the third quarter, the company reported an adjusted EBITDA of $593 million and a profit of $308 million.

Sales volumes are expected to return to levels equivalent to production volumes through the current quarter, with demand in its core Asia and Middle East markets expected to outperform developed global markets.

Borouge reiterated to pay $975 million in dividends for 2022 and at least $1.3 billion for 2023.

In October 2022, the company paid an interim dividend of $325 million, equivalent to AED 1.2 billion or 3.97 fils per share.