Borouge (BOROUGE) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 production of 1,390 kt, with EBITDA margin of 39% and net profit up 52% quarter-on-quarter to $295 million, driven by high utilization rates and successful B3 turnaround.

• Maintained industry-leading profitability and reaffirmed full-year 2025 dividend guidance of 16.2 fils per share, with ongoing share buyback and plans to sustain this payout through at least 2030.

• Strategic focus on high-value products and innovation, with 36% of Q3 sales from high-value segments and new launches in healthcare, advanced packaging, and infrastructure.

• Principal activities include production and trading of polyolefins through subsidiaries in UAE, Singapore, and other countries.

• Profit for the nine months ended 30 September 2025 was $768.8 million, down from $908.2 million year-over-year.

Financial highlights

• Q3 2025 revenue reached $1.447 billion, up 11% sequentially but down 10% year-on-year; nine-month revenue was $4,172.1 million, down from $4,405.1 million year-over-year.

• Adjusted EBITDA for Q3 was $565 million (up 28% QoQ, down 13% YoY), with a margin of 39%; nine-month EBITDA was $1.57 billion (38% margin).

• Net profit for Q3 was $295 million (up 52% QoQ, down 10% YoY); nine-month net profit was $769 million.

• Operating free cash flow increased 68% quarter-on-quarter to $525 million, with a 93% cash conversion ratio.

• Cash and cash equivalents at period end were $197.2 million, down from $418.5 million at year-end 2024.

Outlook and guidance

• Stable macroeconomic environment expected in core markets, with continued high utilization rates and record production volumes through year-end.

• Benchmark pricing anticipated to remain soft in Q4, but quality-price premium guidance unchanged at $200/ton for PE and $140/ton for PP.

• XLPE specialty production from Borouge 4 set to commence by year-end, supporting margin and growth.

• 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 pending regulatory approvals.

• Full-year 2025 dividend guidance reaffirmed at 16.2 fils per share, with a 6.3% yield.