Borouge reports 22% increase in Q3 sales volumes

Borouge Plc announced its results for the third quarter (Q3) of 2026, restoring production with average utilisation increasing from 60 per cent in Q2 to 76 per cent in Q3, and sales volumes increasing by 22 per cent quarter-on-quarter (QoQ) despite the ongoing regional disruptions.

The Company continued to supply customers through alternative logistics routes, shipping all available production without dependence on the Strait of Hormuz.

Revenue increased 3 per cent QoQ to Dhs5.3 billion ($1.4 billion) as higher sales volumes offset a decline in average realised selling prices.

Adjusted EBITDA for Q3 2026 amounted to Dhs1.02 billion ($279 million) and net profit was Dhs399 million ($109 million).

While higher sales volumes supported performance, EBITDA margins were affected by the lower average realised selling prices, reflecting the decline in global polyolefin benchmark prices, which represent HDPE Blow Molding NEA CFR and PP Raffia NEA CFR prices (CMA), and continued elevated freight, logistics, and propylene feedstock costs.

Borouge's assets remained fully available throughout the quarter.

The factors that weighed on Q3 performance improved significantly by the end of the quarter. Utilisation reached 90 per cent in October, supported by improved feedstock availability, and global polyolefin benchmark prices have been higher in October compared to Q3 2026.

As a result, Q4 is expected to be the strongest quarter of FY 2026 with a substantial improvement in EBITDA supported by increased production volumes and improved pricing despite continued high logistics costs.

Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge Plc, said, “The third quarter was an exceptional period, shaped by ongoing external disruption across our operating environment. Despite these conditions, we increased production and sales volumes, maintained strong asset availability and continued serving our customers through alternative logistics routes.

"We closed the quarter with strong momentum and enter Q4 with significantly improved feedstock supply, higher production volumes and improving pricing. Our customer reach and price premia remain resilient and we expect a substantial improvement in profitability in the fourth quarter.”

Average utilisation rates increased throughout the quarter to 76 per cent, while maintaining high technical asset availability, as improved ethane supply enabled more production capacity to be brought back into operation.

Borouge Plc produced 0.95 million tonnes in Q3 2026, up from 0.72 million tonnes in the previous quarter. Sales volumes increased 22 per cent QoQ to 1.07 million tonnes, compared with 0.87 million tonnes in Q2 2026, supported by increased exports to Asia.

Average realised selling prices increased 22 per cent year-on-year, but declined QoQ, reflecting lower global polyolefin benchmark prices during Q3 following the spike in Q2.

Borouge maintained product premia well above guidance in Q3 at Dhs1,105 ($301) and Dhs573 ($156) per tonne for polyethylene and polypropylene respectively, supported by robust demand for its differentiated polyolefin portfolio, with 39 per cent of sales coming from infrastructure and energy solutions.

Borouge Plc paid an interim dividend of 8.1 fils per share in September 2026.

The Company's annual dividend intention of 16.2 fils per share remains in place, representing a dividend yield of 7.2 per cent based on the closing share price as of 28th October 2026.

The Company continued its share buyback programme, reflecting confidence in the Company's long-term value and growth prospects.

Borouge International recorded strong sales growth of 11 per cent and an EBITDA margin of 18.4 per cent in Q3, as prices came down from the crisis-driven peak of Q2.

Q4 has started with strong momentum, supported by the progress in integration, where synergies have already reached a yearly run-rate of Dhs735 million ($200 million), increased production volumes and stronger prices.

The proposed tender offer to exchange Borouge Plc shares for Borouge Group International AG shares, and the subsequent listing on the Abu Dhabi Securities Exchange (ADX) and capital raise, are targeted for 2027, subject to market conditions and the relevant regulatory approvals.

The transaction would give Borouge Plc shareholders access to a global polyolefins leader with greater resilience, scale and geographic reach.

WAM