Borouge reports $1.38b revenue in Q1

Borouge announced its financial results for the three-month period ending 31st March 2023, with revenues of $1.38 billion and adjusted EBITDA of $460 million.

The Company’s value enhancement programme has already delivered a significant impact of more than $100 million in efficiencies and revenue optimisation.

Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, commented, “We are pleased to report our Q1 2023 results, along with a number of important operational and strategic achievements.

The turnaround of our Borouge 2 facility was completed on time and on budget, returning our asset base to full production capacity from the second quarter onwards. We also made important strides forward in the execution of our value enhancement programme, achieving revenue optimisation gains and significant efficiencies in both fixed and variable costs. We will be looking to build on this strong progress throughout the year.”

“In April, we were pleased to pay a final dividend of $650 million to shareholders, bringing total post-IPO dividends for 2022 to $975 million. We remain committed to paying dividends of $1.3 billion for 2023.” Pricing premia for polyethylene (PE) and polypropylene (PP) improved compared to the previous quarter, by 22% for PE and 17% for PP, to reach $264 and $137, respectively.

As such, Borouge maintained its healthy polyolefin pricing premia, a key competitive advantage for the business.

Quarterly sales volumes of 1,157kt increased by 5.1% year-on-year, with constraints on volumes vs. the previous quarter, and revenue stood at $1.38 billion. Lower quarterly production volumes were due to the planned one-off impact of the Borouge 2 turnaround, which has been implemented in line with its expected timetable and within budget.