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Business Energy

ADNOC petrochem subsidiary Borouge Q1-2024 net profit in 37% surge

Borouge gains from price premiums to its petrochemical products - and cost efficiencies



Borouge will also be increasing its overall production capacity in the medium-term, with its Borouge 4 facility now at the 60 per cent completion phase.
Image Credit: Supplied

Dubai: The ADNOC affiliated petrochemicals company Borouge has started 2024 on a strong footing, with first quarter net profit showing a 37 per cent increase to $273 million. This was brought on by 'strong' price premiums for its products, especially those in the high-value category, and from cost efficiency gains. 

The company is showing a 'significant competitive advantage' in the key growth markets of Asia-Pacific, the Middle East and Africa.  Its products are used in sectors such as infrastructure, energy, agriculture, speciality packaging and healthcare.

"The price premium for Borouge’s polyethylene widened to $222 per tonne, up 19 per cent from the previous quarter," said a statement. And the premium for polypropylene increased 46 per cent quarter-on-quarter to $162 per tonne.

Borouge will maintain a $1.3 billion dividend in 2024. This works out to 15.88 fils per share, and represents a current yield of 6.5 per cent.

Upcoming production gains

"Borouge is now entering a transformational phase in our growth journey," said Hazeem Sultan Al Suwaidi, CEO. "We are making excellent progress on the Borouge 4 production facility, which is over 60 per cent completed."

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The plant will raise the company's annual capacity by 28 per cent to 6.4 million tonnes. Borouge is also 'pursuing accelerated global growth prospects including a significant opportunity in the Asia-Pacific region that has reached feasibility stage', the CEO added.

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