ADNOC petrochem subsidiary Borouge Q1-2024 net profit in 37% surge
Borouge gains from price premiums to its petrochemical products - and cost efficiencies
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."
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.