Borouge Plc announced a 33% year-on-year increase in net profit for the second quarter of 2024, reaching $308 million, supported by strong sales and cost efficiencies. Revenue for the quarter totaled $1.5 billion, up 6% compared to the previous year, exceeding analysts’ expectations.
The company achieved an industry-leading EBITDA margin of 41%, reflecting an 18% year-on-year rise in adjusted earnings before interest, taxes, depreciation, and amortization to $613 million. This growth was bolstered by a 16% increase in sales volumes compared to the previous quarter and a 9% increase year-on-year.
Borouge’s premium products continued to perform well amid global market challenges. The company reported robust price premia for polyethylene and polypropylene, at $198 and $138 per tonne respectively. CEO Hazeem Sultan Al Suwaidi stated, “We are delivering exceptional financial and operational performance, highlighting the company’s remarkable strength and resilience.”
The Borouge 4 growth project is over 70% complete and aims to enhance annual production capacity by 28%. The company also reaffirmed its commitment to a dividend of $1.3 billion for 2024, yielding nearly 6.5%.
In the first half of 2024, Borouge’s net profit was $581 million, a 35% increase from the prior year. Looking ahead, the company is initiating a feasibility study for a specialty polyolefins complex in China and aims to complete its second ethylene unit by 2028.
With an emphasis on digitalization and artificial intelligence, Borouge is enhancing productivity and aiming for net zero carbon emissions by 2045. The company’s comprehensive sustainability efforts earned it a spot in the S&P Global LargeMidCap ESG index, highlighting its commitment to environmental, social, and governance standards.