Borouge (BOROUGE) Q2 2025 earnings summary

Executive summary

• Q2 2025 net profit was $193 million, exceeding expectations, with H1 2025 net profit at $474.25 million, down from $580.50 million year-over-year, and strong operational execution including the Borouge 3 turnaround completed ahead of schedule.

• Achieved robust Q2 sales volumes of over 1.1 million tonnes, focusing on high value-added infrastructure solutions and innovation, with 41% of Q2 volumes from value-added energy and infrastructure segments.

• Maintained commercial excellence and strong customer retention, with innovation recognized by an industry award.

• Principal activities include production and trading of polyolefins through subsidiaries in UAE, Singapore, China, Egypt, Kenya, South Korea, and India.

Financial highlights

• Q2 2025 revenue was $1.31 billion, down 13% year-on-year and 8% sequentially; H1 2025 revenue was $2,724.87 million, a decrease from $2,805.14 million year-over-year.

• Adjusted EBITDA for Q2 was $440 million, with H1 adjusted EBITDA at $1,004 million and a 37% margin; H1 gross profit was $1,013.48 million.

• Net profit for H1 2025 was $474.25 million, down 18% year-over-year, supported by stable pricing and healthy sales volumes.

• Blended average selling price declined 3% year-over-year in H1, but polyethylene premium improved 12% to $235/tonne.

• Cash and cash equivalents at period end were $419 million, up from $298.67 million at the end of June 2024.

Outlook and guidance

• Expect continued resilience in infrastructure-led demand, especially in Asia and the Middle East, with active volume allocation to attractive markets.

• No major turnarounds planned for the remainder of 2025; high utilization rates for PE and PP anticipated in H2.

• Full-year 2025 dividend guidance increased to AED 0.162/share, with interim dividend of AED 0.081/share to be paid in September; annual dividend of $649.85 million paid in April 2025.

• Major restructuring planned: Borouge PLC and Borealis to combine into Borouge Group International, acquiring Nova Chemicals for $13.4 billion, with implementation expected in 2026.

• ADNOC and OMV will each hold 46.94% in the new entity, with 6.12% free float, pending regulatory and shareholder approval.