Borouge

1. Company Overview & Earnings Context

Borouge Plc reported its Q1 2026 results, delivering a resilient operational performance despite regional disruptions, although profitability declined year-on-year.

2. Financial Performance Snapshot

• Revenue: ~AED 4.32B (vs ~AED 5.21B YoY)

• Gross profit: ~AED 1.50B (vs ~AED 2.11B YoY)

• Operating profit: ~AED 0.90B (vs ~AED 1.58B YoY)

• Net profit: ~AED 0.57B (vs ~AED 1.03B YoY)

• EBITDA (adjusted): ~AED 1.26B

• EPS: ~AED 0.04

3. Operational Highlights & Key Metrics

• Production volume: 1.21M tonnes (98% capacity utilization)

• Sales volume: 1.09M tonnes

• Total assets: ~AED 31.6B

• Cash & equivalents: ~AED 2.52B

• Dividend (FY25 final): ~AED 2.42B to be paid

4. Key Performance Drivers

Borouge’s performance was supported by strong operational execution, maintaining production at 98% capacity, as highlighted in the market announcement.

However, earnings declined due to:

• Lower product pricing and margins earlier in the quarter

• Higher logistics and freight costs, particularly during March disruptions

• Geopolitical challenges impacting supply routes, including Strait of Hormuz constraints

The company mitigated impact by rerouting 61% of March production through alternative logistics channels, ensuring continuity of supply.

5. Outlook & Forward Guidance

Management points to a recovering pricing environment, with polyolefin prices rising sharply in March and remaining strong into April, supporting near-term recovery.

The formation of Borouge International is expected to enhance scale, diversification, and long-term earnings resilience, supporting future growth and shareholder value creation.

6. 🧾 Investor Takeaway

Borouge showed strong operational resilience, but profitability was pressured by external factors, with recovery dependent on improving pricing and normalization of logistics conditions.