Borouge announces strong revenue growth of 16.4% for H1 2022

UAE’s petrochemical company Borouge, announced strong financial results for the first six months of 2022, with a 16.4 per cent increase in revenue to $3,460m for H1 2022, versus the same period last year, driven by sales volume growth of 8.6 per cent and average price per tonne growth of 4.1 per cent.

In its first earnings as a listed company, Borouge reported that the adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 1.7 per cent to $1,512m, whilst net income increased 2.5 per cent to $853m.

Second quarter revenue grew by 17.6 per cent, whilst adjusted EBITDA grew by 35.5 per cent compared to the prior quarter. This was achieved despite higher underlying feedstock prices as Borouge optimised feedstock arrangements to lower overall production costs per tonne compared with the previous quarter.

In our first financial results since our landmark listing on the ADX, we have delivered strong performance. The outlook for the year remains positive, as we continue to deliver exceptional returns to our shareholders.#Borouge pic.twitter.com/XDwz95aR4G

— Borouge (@Borouge) July 28, 2022

In the first half of 2022, Borouge saw overall production capacity growth of 6.9 per cent year-on-year (YoY) as the ramp-up of the new PP5 plant and the turnaround of Borouge 1 in Q1 (B1) were completed, helping drive an 8.6 per cent YoY growth in overall sales volumes. June 2022 saw the strongest ever sales volumes achieved in a single month, with an increasing proportion of products sold into the infrastructure solutions market.

Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC MD and Group CEO, and Chairman of Borouge, commented, “Borouge has delivered double-digit revenue growth in its maiden half-year results as a listed company, demonstrating exceptional financial performance and commercial resilience. These impressive results follow the company’s record-breaking IPO on the Abu Dhabi Securities Exchange in June of this year.

“Borouge is central to delivering ADNOC’s ambitious Downstream and Industrial growth strategy and is poised for robust future growth, benefitting from the global boom in the petrochemicals sector. ADNOC, alongside its long-standing partner Borealis, will remain a committed, long-term majority shareholder in Borouge as the company continues on its exciting growth trajectory while delivering exceptional value and superior shareholder returns,” he added.

Thomas Gangl, CEO of Borealis, stated, “The shareholders are pleased with Borouge’s continued strong results in its first results announcement following its successful listing. The strong performance of the company, combined with the long-term partnership of Borealis and ADNOC, provides the platform for further growth.”

Hazeem Sultan Al Suwaidi, CEO of Borouge, stated, “We have delivered significant sales volumes growth during the first half of 2022 and continue to achieve strong premia above benchmark pricing, reflecting our value-added, differentiated products and innovative solutions that have a positive impact on society. We are very optimistic regarding the company’s future growth, and we remain committed to delivering exceptional value and returning an attractive dividend to our shareholders.”

In June 2022, Borouge was listed on the Abu Dhabi Securities Exchange in Abu Dhabi’s largest-ever initial public offering and the Middle East’s largest-ever petrochemicals listing. Recently, Borouge also announced a new milestone in the construction of the Borouge 4 expansion in Ruwais.

Read:

Borouge 4 construction to commence in Ruwais, early phase underway

ADNOC begins process to list Borouge on Abu Dhabi Securities Exchange