Abu Dhabi’s Borouge reports 13.5% rise in nine-month revenue

Abu Dhabi-based petrochemicals company Borouge reported a 13.5 per cent increase in revenue equalling $5.13bn for the nine months ending September 30, 2022, over the previous year.

The increase in revenue was driven by an 11.9 per cent increase in total sales volumes, with polypropylene (PP) volumes up 14.7 per cent.

We are pleased to have demonstrated robust performance in the nine months ended September 2022, boosted by a strong increase in sales volumes and revenues. This is testament to our leading market position.#Borouge pic.twitter.com/WuIMQvtOjk

— Borouge (@Borouge) October 28, 2022

Production capacity grew by 7.9 per cent year-on-year as the ramp-up of the PP5 plant was completed. Adjusted EBITDA declined by 3.6 per cent to $2.10bn due to globally elevated logistics and material costs, the company said in a statement.

The company’s revenue for the three months ending September 30, increased by 8 per cent year-on-year to equal $1.67bn, driven by sales volume growth. Total sales volume in the three months increased by 18.1 per cent year-on-year to 1,341kt.

For the third quarter, Borouge delivered adjusted EBITDA of $593m and a profit for the period of $308m.

“We are pleased to report our third quarter and nine-month results, with strong year-to-date performance for revenue and sales volume delivered across our business,” said Hazeem Sultan Al Suwaidi, chief executive officer of Borouge.

“Our infrastructure solutions continue to grow their share of our end product market, accounting for 46 per cent in the third quarter and remain a priority as we differentiate our offering from global peers.”

Borouge said that it would pay $975m in dividends to shareholders for FY 2022, and a minimum of $1.3bn for FY 2023. In October 2022, the company paid an interim dividend of $325m, equivalent to 3.97fils per share. Following its listing, Borouge was included in the FTSE Global Equity Index Series.

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