ADNOC’s XRG sees chemicals portfolio deliver resilient earnings across Borouge, Covestro and Fertiglobe
Borouge posted $1.8b adjusted EBITDA while Fertiglobe more than doubled earnings
Dubai: ADNOC’s international investment arm XRG is beginning to see earnings contributions across its expanded chemicals portfolio, with Borouge International, Covestro and Fertiglobe reporting resilient results during the second quarter of 2026.
The portfolio gives XRG exposure to polyolefins, advanced materials and fertilisers across the Middle East, Europe and North America, reducing reliance on individual products, markets and economic cycles.
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UAE investors also have direct exposure to parts of the portfolio through Abu Dhabi Securities Exchange-listed Borouge plc and Fertiglobe, while continued investment is bringing additional production capacity and industrial technology into the UAE.
Borouge International posts $1.8bn EBITDA
Borouge International reported adjusted EBITDA of $1.8 billion in its first full quarter as a combined company.
The business was created in March through the combination of Borouge plc, Borealis and NOVA Chemicals, bringing together operations spanning the Middle East, Europe and North America.
The company is progressing initiatives expected to generate more than $500 million in EBITDA synergies over time.
Borouge plc, which remains listed on the Abu Dhabi Securities Exchange, reaffirmed its annual dividend intention of 16.2 fils per share.
Borouge International has also established a shareholder returns policy that includes a minimum annual dividend of more than $2 billion.
Fertiglobe earnings more than double
Fertiglobe more than doubled adjusted EBITDA to $371 million in the second quarter, supported by stronger nitrogen fertiliser markets and operational performance across its international assets.
The company operates across multiple markets and trade routes and remains one of the world’s major producers of nitrogen fertilisers used in global food production.
Its ADX listing gives investors in the UAE direct exposure to the company’s performance.
Covestro, which joined XRG’s portfolio in late 2025, recorded first-half EBITDA of €669 million.
Its business spans speciality and advanced materials supplied to industries including automotive, construction, electronics and healthcare, extending XRG’s exposure beyond traditional commodity chemicals.
Ruwais capacity set to expand
The international portfolio is also feeding into XRG’s industrial expansion in the UAE.
Borouge International, jointly owned by XRG and OMV, combines more than 16,500 patents and seven innovation centres globally.
That expertise is supporting development of Borouge 4 in Ruwais, which is expected to increase production capacity at the site to about 6.4 million tonnes annually.
Once completed, the expansion would make Ruwais the world’s largest single-site polyolefins complex.
Portfolio companies explore UAE projects
Links between XRG’s businesses and UAE industrial projects are also beginning to develop.
During the first half of 2026, Covestro, Fertiglobe and TA’ZIZ, the joint venture between ADNOC and ADQ, announced initiatives to explore opportunities across ammonia, nitric acid and advanced materials value chains in the UAE.
The strategy gives XRG a chemicals portfolio spanning different regions, customers and end markets while extending ADNOC’s presence into higher-value chemicals, advanced materials and fertilisers.
Earnings generated by the international businesses flow back to XRG and its shareholders, while the listed interests in Borouge plc and Fertiglobe allow UAE investors to participate directly in parts of the portfolio.
- With inputs from WAM.
