Borouge Records Strong Second-Quarter Profit of $229 Million

Borouge, the successful joint venture between Adnoc and Borealis, recently announced its second-quarter profit, showcasing its resilience and positive market positioning.

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Borouge Reports Strong Q2 Performance and Plans for Future Growth

The net profit attributable to shareholders for the three-month period ending in June reached an impressive $229 million, as reported to the Abu Dhabi Securities Exchange. Alongside its profit, the company recorded a second-quarter revenue of $1.4 billion, a testament to its steady growth and efficiency in a challenging market environment.

Resilience in a Challenging Market: Borouge's Q2 Results

Chief Executive Hazeem Al Suwaidi expressed pride in Borouge's performance, attributing the success to the successful completion of the planned turnaround for the Borouge 2 facility and the high utilization rate of its production. Additionally, the company's ambitious value-enhancement program continues to yield significant efficiencies, allowing Borouge to navigate market pressures and position itself for further growth.

: Borouge's Growth Strategy: Emphasizing Value and Efficiency

Borouge's commitment to shareholder value is evident in its endorsement of an interim dividend of $650 million, subject to approval during the second half of the year. The company has also reiterated its dedication to paying $1.3 billion in dividends for 2023, providing investors with confidence in its financial stability and commitment to returns.

Rewarding Shareholders: Borouge's Dividend Commitment

Despite facing challenges in the polyolefin markets, Borouge remains well positioned in its core territories, prepared to deliver product premiums and navigate the volatility expected in pricing throughout 2023. The company's resilience is further supported by the positive impact of its value-enhancement program and the resilience of its pricing premiums relative to benchmarks.

Navigating Market Challenges: Borouge's Market Positioning

Looking ahead, Borouge has set its sights on international expansion opportunities, strategically targeting geographies and markets that align with its growth plans. The company's listing on the Abu Dhabi Securities Exchange following its oversubscribed initial public offering highlights its strong market presence and global appeal.

Global Expansion Plans: Borouge's International Growth Strategy

As part of its expansion strategy, Adnoc has entered into discussions with Austrian energy company OMV to create a new combined petrochemicals holding entity, aiming to merge their respective shareholdings in Borouge and Borealis. This strategic move positions Borouge for further growth and strengthens its position in the global petrochemicals market.

Strengthening Market Presence: Borouge's Successful IPO

Borouge's main product, polypropylene, plays a significant role in various industries, including packaging, plastics, and textiles, and the projected growth of the global polypropylene market further solidifies the company's promising future.

Strategic Alliances: Borouge and OMV's Joint Petrochemical Venture

As the UAE plans to triple its petrochemical production capacity by 2025, Borouge is poised to play a key role in this ambitious goal, leveraging its expertise and market leadership to contribute to the nation's economic growth and success.

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