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 on year, while revenue rose 9 percent to $1.42 billion, fuelled by increased sales and rise in average selling prices of polyethylene and polypropylene.

Total sales volumes increased 10 percent year on year to 1.25 million tonnes, fuelled by demand in Asia Pacific and Middle East markets.

Sales volumes of polyethylene and in polypropylene – types of thermoplastic polymers, a class of plastics used in packaging, textiles, consumer goods and industrial applications – rose 8 percent and 13 percent, respectively.

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“Borouge is firmly positioned on an accelerated growth trajectory having demonstrated remarkable resilience and operational excellence over the past couple of years,” said CEO Hazeem Sultan Al Suwaidi. 

Borouge, backed by Abu Dhabi National Oil Company (Adnoc) and Austria’s OMV, reduced sales and distribution expenses 6 percent year on year.

Shares of the company were trading 0.4 percent up at AED2.58 on the Abu Dhabi Securities Exchange (ADX) on Wednesday at 10:48am UAE time. Year-to-date the shares are up more than 7 percent.