ABU DHABI, (UrduPoint / Pakistan Point News / WAM – 31st Jul, 2026) Borouge Plc reported net profit of US$191 million in the second quarter of 2026, compared with US$156 million in the first quarter, an increase of around 23 percent, supported by sales volumes of 0.9 million tonnes.
According to a press release issued on Friday, the company‘s revenue increased by around 20 percent to $1.4 billion in the second quarter, compared with $1.2 billion in the first quarter of 2026, as a result of the company‘s operational and commercial resilience.
The company said its resilient second-quarter performance demonstrated the strength of its operations, supply chain agility and financial discipline despite adverse regional developments.
Following the incident on 5th April at its Ruwais complex, the company restored full asset availability ahead of schedule, with the successful repair of affected assets completed by the end of June. The company also successfully shipped all volumes produced during the quarter, as well as additional volumes from inventory.
The company benefited from a 53 percent increase in average realised prices quarter-on-quarter (QoQ), supported by stronger global polyolefin pricing and record premia for Borouge’s differentiated products.
Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge Plc, said, “Borouge delivered a resilient second quarter performance despite the regional developments, reflecting the strength of our operations, the agility of our supply chain and the outstanding commitment of our people.
“The swift and coordinated response enabled us to implement effective alternative logistics routes, ensuring we shipped all volumes produced, supplemented by additional volumes from inventory, during the quarter, without dependency on the Strait of Hormuz.”
He added that repair work was completed safely and successfully, restoring full production availability across all units affected by the incident on 5th April.
“Our financial resilience and disciplined execution continue to support our commitment to shareholders, with Borouge Plc’s annual dividend intention intact,” Al Suwaidi stated.
In the second quarter of 2026, Borouge Plc recorded production volumes of 0.7 million tonnes and sales volumes of 0.9 million tonnes.
The company successfully developed alternative logistics routes via road, rail and sea, enabling it to ship beyond volumes produced during the quarter and supporting continued customer supply despite regional disruption.
Borouge’s utilisation rates averaged 60 percent during the quarter. With asset availability now fully restored, Borouge is well positioned to return to high utilisation rates during the second half of 2026, depending on logistics and feedstock availability.
While higher average realised prices partially offset increased freight and logistics costs and higher propylene feedstock prices, EBITDA margins were temporarily impacted by these elevated costs during the quarter.
Borouge Plc continues to make positive progress on the Borouge 4 expansion project, set to boost the company‘s production capacity by 1.4 million tonnes, with the new Cross-Linked Polyethylene (XLPE) plant reaching commercialisation.
Following successful performance testing, the company delivered the first batch of materials to customers.
The new plant is set to add 100,000 tonnes of annual capacity, doubling Borouge Plc’s XLPE output and strengthening its ability to deliver premium polyolefin solutions.
Further Borouge 4 plants are expected to come online in 2026 and 2027, driving greater value for customers and shareholders.
The successful formation of Borouge International, completed on 30th March 2026, created the world‘s fourth-largest polyolefins producer by nameplate capacity, combining premium products, proprietary technologies and a global footprint.
Borouge Plc is now part of Borouge International and is expected to benefit from the global footprint, technologies and product portfolio of the new platform, strengthening Borouge Plc’s long-term competitiveness, enhancing geographic diversification and scale to provide a broader base for future value creation, while maintaining a clear commitment to shareholder returns.
Borouge International’s North American and European operations benefited from stronger prices in the second quarter, demonstrating the benefits of the new globally diversified platform.
As the world‘s fourth-largest polyolefins producer, with 13.6 million tonnes of annual production capacity across 30 global manufacturing sites, Borouge International is well positioned to deliver long-term growth and value.
Borouge International delivered a strong adjusted EBITDA of $1.8 billion in the second quarter, demonstrating the resilience of its business model and the immediate benefits of its diversified global footprint, premium product portfolio and disciplined operational execution.
As part of Borouge International, Borouge Plc’s annual dividend intention of 16.2 fils per share remains in place.
The timing of the proposed tender offer, which will convert Borouge Plc shares to Borouge Group International AG shares, will align with the new company‘s future equity raise to maximise value for all shareholders.
The tender offer is expected to take place in 2027, subject to market conditions and approval by the UAE Capital Market Authority.
Average realised pricing is expected to remain elevated in the short term, while logistics costs are expected to remain high.
Further guidance will be provided as appropriate in light of regional developments. Borouge retains significant financial resilience to navigate short-term operational disruption.
