Borouge Q3 profit rises to $328m on record sales

Abu Dhabi-listed Borouge reported a 16 percent year-on-year increase in net profit to $328 million, driven by record quarterly sales and strong pricing for its premium products.

Revenue grew 7 percent year on year to $1.6 billion, reflecting a strategic focus on high-value markets that drove a 2 percent year-on-year increase in sales volumes.

Despite global market volatility, the company’s average polyethylene and polypropylene prices reached $198 and $160 per tonne, higher than their benchmarks. Premium increased 14 percent and 50 percent year on year, respectively.

The third quarter saw record production levels and highest-ever sales volumes, said CEO Hazeem Sultan Al Suwaidi.

Net profit for the nine months jumped 27 percent annually to $908 million, while revenue rose 3 percent year on year to $4.4 billion.

• Adnoc to buy German chemicals company
• Borouge to treble production despite lacklustre demand
• Adnoc and OMV in talks to create $30bn chemicals giant

Al Suwaidi said the Borouge 4 facility is 80 percent complete and will significantly increase production and revenue.

The feasibility study for a planned new speciality polyolefins plant in China is progressing well, he added.

Borouge expects a stable macroeconomic outlook across its key markets in the fourth quarter of 2024.

Strong production and sales volumes are projected to maintain positive momentum, bolstered by a strategic focus on operational efficiencies and serving high-value segments, the company said.