Borouge Plc reported a 24% year-on-year increase in net profit for 2024, reaching $1.24 billion. The rise was supported by record production levels of 5.2 million tonnes and sales volumes of 5.3 million tonnes, driven by strong demand for the company’s polyolefin solutions.
The company recorded an industry-leading EBITDA margin of 41%, with EBITDA increasing 14% to $2.48 billion. Revenue rose 4% to $6 billion, supported by operational efficiencies and strong market positioning. Borouge’s Chief Executive Officer, Hazeem Sultan Al Suwaidi, highlighted the company’s performance amid industry challenges, stating, “Borouge has generated substantial earnings growth while maintaining strong profitability, reinforcing our industry leadership.”
Strategic Growth and Expansion
Borouge’s 4 expansion project, backed by ADNOC and Borealis, is expected to increase production capacity by 28% and generate annual revenue of $1.5 to $1.9 billion. The company is also expanding its ethane cracker unit, targeting an additional 230,000 tonnes of production capacity by 2028. Feasibility studies are underway for a specialty polyolefins complex in Fuzhou, China, as part of its international expansion strategy.
Product Innovation and Market Performance
In 2024, Borouge launched nine new products across infrastructure, packaging, healthcare, and post-consumer recycling segments. The high-value infrastructure solutions segment accounted for 40% of total sales volume, while Asia Pacific remained the company’s largest market, comprising 63% of total sales.
The company maintained price premia of $198 per tonne for polyethylene and $150 per tonne for polypropylene. Borouge also continued its AI and digital transformation efforts, achieving $573 million in value generation through operational improvements.
Financial Outlook and Dividend Commitment
Borouge reaffirmed its commitment to shareholder returns, announcing its intention to maintain a $1.3 billion dividend for 2025. The company reported strong cash flow, with a 17% year-on-year increase in adjusted operating free cash flow to $2.31 billion. The net debt-to-EBITDA ratio stood at 1.1 times as of December 2024, following the repayment of $200 million in debt.
Sustainability Initiatives
Borouge continued its decarbonization efforts, achieving an annual reduction of over 500 KtCO2eq since 2018. The company aims to reduce greenhouse gas emissions intensity by 25% by 2030 and reach net zero by 2045. In 2024, Borouge was included in the S&P Global LargeMidCap ESG index and ranked in the top 15th percentile among global chemical companies.
2025 Outlook
Borouge expects continued growth in circular and durable product segments, with management guidance for product premia set at $200 per tonne for polyethylene and $140 per tonne for polypropylene. The Borouge 3 maintenance schedule is on track for Q2 2025, with an estimated production impact of 320 kt. The company remains focused on operational efficiencies and expanding its differentiated product portfolio.