Borouge Plc, a leading petrochemicals company providing innovative and differentiated polyolefins solutions, has reported a substantial $281 million net profit for the first quarter driven by record monthly production in March, an increase in sales volumes and continuous cost discipline.

Q1 2025 operational performance remained strong, with production volumes rising 7% year-on-year in the first quarter of 2025. Overall asset reliability remained strong, achieving 94.4% by the end of the quarter, with polyethylene and polypropylene utilisation rates at 101% and 98% respectively, underscoring the company’s operational excellence and efficiency.

Demand for high-value product segments were robust in the core growth markets of Asia Pacific, the Middle East, and Africa. Total sales volumes increased 10% year-on-year in the first quarter to 1.25 million tonnes, driven by substantial growth of 8% in polyethylene and 13% in polypropylene sales volumes.

Borouge’s differentiated and high-quality materials continued to attract premium pricing, with prices for polyethylene and polypropylene averaging $224 and $154 well above the company’s through-the-cycle guidance, respectively. The premia reflects the significant pricing uplift of Borouge’s differentiated products, which support key growth sectors including infrastructure, energy, agriculture, advanced packaging, and healthcare.

Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, commented: “Borouge is firmly positioned on an accelerated growth trajectory having demonstrated remarkable resilience and operational excellence over the past couple of years. This gives us strong confidence as we enter a new phase of transformational growth with Borouge Group International. A core focus of our strategy remains on delivering superior value to our shareholders, demonstrated by Borouge’s intention to further increase our dividend to 16.2 fils per share for 2025 - which will also serve as the intended minimum share payout up to 2030 under Borouge Group International.”

The company’s continued strong performance lays firm foundations for the proposed combination of Borouge and Borealis, and the acquisition of Nova Chemicals, to create Borouge Group International, a $60 billion global petrochemicals leader. The new entity has been designed to deliver consistently strong dividends and significant near-term growth, with the transactions scheduled for completion in Q1 2026, subject to legal and regulatory approvals.

Targeted growth in high-value product segments driving pricing strength

Revenue in Q1 2025 grew 9% year-on-year to $1.42 billion, driven by higher average selling prices and increased sales volumes. The strong performance reflects the growing demand for the company’s differentiated energy and infrastructure solutions, which contributed 38% of total sales volumes during the quarter. Average sales prices for polyethylene and polypropylene each rose 2% quarter-on-quarter.

Cost discipline remained a key focus, with sales and distribution expenses reduced by 6% year-on-year. The company’s rigorous cost management builds on its successful Value Enhancement Programme, delivering a $607 million benefit in 2023, contributing to an industry-leading EBITDA margin of 40% in the first quarter.

Adjusted EBITDA for the first quarter stood at $564 million, broadly stable year-on-year. Cash conversion remained robust at 93%, while adjusted operating free cash flow reached a solid $523 million, demonstrating the company’s continued focus on operational efficiency and cash generation. The balance sheet remains very solid, with the net debt/EBITDA ratio at 0.9 times as of 31 March 2025.

Shareholders receive substantial dividend for 2024, with intention for attractive dividend uplift from 2025. Borouge executes share buyback plan approved at its AGM

Following the company’s 2025 Annual General Meeting (AGM) on 7 April, shareholders approved a final dividend of $650 million for 2024 which was paid on 28 April 2025, bringing the total 2024 dividend payout to $1.3 billion - equivalent to 15.88 fils per share. This brings the total dividend distributed to shareholders since the company’s IPO in 2022 to a significant $3.58 billion.