Abu Dhabi Securities Exchange-listed Borouge Plc reported revenue of USD 1.4 billion for the third quarter of 2026, representing a 3% quarter-on-quarter increase, supported by higher sales volumes despite declining average selling prices. Adjusted EBITDA reached USD 279 million, while net profit stood at USD 109 million, reflecting the impact of regional disruptions, elevated freight and logistics costs, higher propylene feedstock expenses and lower global polyolefin benchmark prices.
Sales volumes increased 22% quarter-on-quarter to 1.07 million tonnes from 0.87 million tonnes in Q2 2026, supported by improved ethane supply and increased exports to Asia. Production rose to 0.95 million tonnes from 0.72 million tonnes, while average plant utilisation improved to 76% from 60%. Despite regional logistics disruptions, Borouge successfully shipped all available production through alternative routes without relying on the Strait of Hormuz.
Average realised selling prices increased 22% year-on-year but declined compared with Q2, reflecting lower global benchmark prices following the previous quarter’s spike. Borouge maintained product price premiums of USD 301 per tonne for polyethylene and USD 156 per tonne for polypropylene, exceeding its guidance. Infrastructure and energy solutions accounted for 39% of total sales, supporting demand for its differentiated polyolefin products.
Operational conditions improved significantly towards the end of the quarter, with plant utilisation exceeding 90% in October as feedstock availability recovered. Global polyolefin benchmark prices also strengthened compared with Q3 levels. Borouge expects Q4 2026 to be its strongest quarter of the year, with a substantial improvement in EBITDA supported by higher production volumes and improved pricing, although logistics costs remain elevated and the outlook depends on regional operating conditions.
Borouge continued progressing its Borouge 4 expansion project, which is expected to add 1.4 million tonnes of annual polyethylene production capacity. The company achieved mechanical completion and commissioning of its PE7 plant, adding 700,000 tonnes of capacity. Its new cross-linked polyethylene (XLPE) plant also continued ramping up operations, recording 20,000 tonnes of sales during Q3 and adding up to 100,000 tonnes of annual capacity.
The company paid an interim dividend of 8.1 fils per share in September 2026 and reaffirmed its annual dividend intention of 16.2 fils per share, representing an indicative yield of 7.2% based on its October 28 closing share price. Borouge also continued its share buyback programme as part of its shareholder return strategy.
Meanwhile, Borouge International, established in March 2026, continued advancing its integration activities. The combined business has 13.6 million tonnes of annual production capacity across 30 manufacturing sites and has identified more than USD 500 million in potential annual EBITDA synergies, with approximately 75% targeted within three years of completion. Annualised synergies have already reached USD 200 million, while Q3 sales grew 11% and the EBITDA margin stood at 18.4%.
The proposed tender offer to exchange Borouge Plc shares for Borouge Group International AG shares, followed by an Abu Dhabi Securities Exchange listing and capital raise, is targeted for 2027, subject to regulatory approvals and market conditions. The proposed transaction would provide existing Borouge shareholders access to a larger global polyolefins business with expanded production capacity and geographic reach.
Disclaimer: This article is for informational purposes only and should not be construed as investment, financial, or legal advice.
