Earnings Report

Borouge

Q1 26

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.