Abu dhabi: Borouge Plc has reported a significant increase in its net profit for the second quarter of 2026, reaching US$191 million, up from US$156 million in the first quarter. This 23 percent growth was supported by sales volumes of 0.9 million tonnes.
According to Emirates News Agency, the company's revenue also saw a notable increase of approximately 20 percent, totaling $1.4 billion in the second quarter compared to $1.2 billion in the first quarter of 2026. This growth was attributed to Borouge's operational and commercial resilience.
Borouge highlighted the strength of its operations, supply chain agility, and financial discipline in achieving these results despite facing adverse regional developments. The company promptly restored full asset availability ahead of schedule after an incident at its Ruwais complex on April 5th, completing repairs by the end of June. Borouge successfully shipped all produced volumes during the quarter, along with additional volumes from inventory.
The company benefited from a 53 percent increase in average realized prices quarter-on-quarter, driven by stronger global polyolefin pricing and record premia for its differentiated products. Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge Plc, emphasized the company's resilience and the outstanding commitment of its people in overcoming regional challenges.
Al Suwaidi noted the company's swift response in implementing alternative logistics routes, shipping all produced volumes without dependence on the Strait of Hormuz. He also confirmed the safe and successful completion of repair work, restoring full production availability across all affected units.
In the second quarter, Borouge recorded production volumes of 0.7 million tonnes and sales volumes of 0.9 million tonnes. The company developed alternative logistics routes via road, rail, and sea, ensuring continued customer supply despite regional disruptions. Borouge's utilization rates averaged 60 percent during the quarter, with expectations to return to higher utilization rates in the second half of 2026.
While increased freight, logistics, and propylene feedstock costs temporarily impacted EBITDA margins, Borouge's financial resilience and disciplined execution remain strong. The company continues to progress on the Borouge 4 expansion project, which will boost production capacity by 1.4 million tonnes with the new Cross-Linked Polyethylene (XLPE) plant reaching commercialisation.
The new XLPE plant is set to double Borouge's output and enhance its capability to deliver premium polyolefin solutions. Further expansion plants are expected to come online in 2026 and 2027, driving greater value for customers and shareholders.
Borouge International's formation on March 30, 2026, established it as the world's fourth-largest polyolefins producer by nameplate capacity. This new platform combines premium products, proprietary technologies, and a global footprint, enhancing Borouge Plc's competitiveness and geographic diversification.
Borouge International's North American and European operations benefited from stronger prices, demonstrating the advantages of a globally diversified platform. With 13.6 million tonnes of annual production capacity across 30 global sites, Borouge International is positioned for long-term growth and value.
In the second quarter, Borouge International achieved an adjusted EBITDA of $1.8 billion, showcasing its resilient business model and the benefits of its diversified footprint and disciplined execution. Borouge Plc's annual dividend intention of 16.2 fils per share remains unchanged.
The proposed tender offer to convert Borouge Plc shares to Borouge Group International AG shares is expected in 2027, aligning with the new company's future equity raise. Average realized pricing is anticipated to remain elevated in the short term, with logistics costs expected to stay high. Borouge retains significant financial resilience to navigate short-term operational disruptions.