Borouge’s 2023 profit falls 29% on produce price drop

Wam

Abu Dhabi-listed petrochemicals major Borouge said net profit fell 29 percent to $1 billion in 2023 from $1.41 billion in 2022.

The slide in profit was attributed to a 16 percent decline in average selling prices as global polyolefins demand reduced from peak levels in 2022.

This was partially offset by a one percent increase in sales volumes to 5.1 million tonnes.

• Market cap of top 16 UAE-listed companies hit $591bn
• Borouge secures two new $15m contracts from UAE firms
• Borouge profit down 50% as merger talks continue

Full-year revenue reached $5.8 billion, a decline of 14 percent from $6.7 billion.

Net profit in the fourth quarter increased 16 percent year on year to $288 million, supported by significant contributions from the value enhancement programme.

Fourth quarter revenue reached $1.5 billion, down six percent year on year on weaker global demand.

The strategic Borouge 4 project is progressing well, said Borouge CEO Hazeem Sultan Al Suwaidi, adding that the company will target high-growth segments and develop sustainable solutions.

The petrochemicals major plans to pay $1.3 billion in cash dividends for 2024.