Borouge (BOROUGE) investor relations material

Executive summary

• FY2025 net profit reached $1.1 billion, down 11% year-over-year but surpassing market expectations, with a 37% adjusted EBITDA margin and 19% net profit margin.

• Achieved record annual sales volumes of 5.4 million tonnes and production of 5.1 million tonnes, with Q4 2025 production at 1.46 million tonnes and sales at 1.64 million tonnes.

• Q4 2025 net profit was $330 million, up 12% quarter-over-quarter, with highest-ever utilization rates and robust commercial performance.

• Major restructuring announced: planned merger with Borealis and acquisition of Nova Chemicals for $13.4 billion, forming Borouge Group International.

• Continued strong execution of growth and innovation programs, with $94 million in value generated from new products and 20% growth in circular solutions sales.

Financial highlights

• FY2025 revenue totaled $5.85 billion, down 3% year-over-year, with Q4 revenue at $1.68 billion, up 16% quarter-over-quarter.

• Adjusted EBITDA for FY2025 was $2.17 billion (37% margin); Q4 adjusted EBITDA was $601 million (36% margin).

• Net profit margin for FY2025 was 19%; Q4 net profit margin was 20%.

• Operating free cash flow for FY2025 was $1.86 billion; Q4 was $502 million.

• Free cash flow yield was the highest among global peers.

Outlook and guidance

• 2026 targets include 105% utilization and ramp-up of Borouge 4, with no major planned turnarounds.

• Long-term polyolefin demand in core markets projected to grow at 4% annually through 2030, led by Asia and Middle East & Africa.

• Premium guidance for PE and PP remains at $200/ton and $140/ton, respectively, through the cycle.

• Dividend intention reaffirmed at 16.2 fils per share for FY2025, with payout expected in April 2026.

• Restructuring and global expansion expected to enhance market reach and growth opportunities.