BOROUGE’S NET PROFIT SURGES 24% TO RECORD $1.24 BILLION

Borouge, a petrochemical industry giant reported on Wednesday a net profit of $1.24 billion, representing a significant 24 per cent increase compared to the previous year.

The Abu Dhabi-based company said the remarkable profit growth was fuelled by record production and sales volumes that underscore the company’s robust operational strategies.

The company has consistently outperformed many of its global industry peers, boasting an impressive Ebitda margin of 41 per cent for the full year. Ebitda climbed 14 per cent year-on-year to reach $2.48 billion, driven by a 4.0 per cent increase in revenue, which totaled $6 billion. These metrics highlight Borouge’s ability to navigate a challenging global market effectively.

Borouge achieved record production levels of 5.2 million tonnes, supported by exceptional utilization rates of 110 per cent for polyethylene and 98 per cent for polypropylene. The company’s strategic focus on operational excellence has enabled it to maximize production capabilities, setting new benchmarks in the industry.

Sales volumes also reached unprecedented heights, totaling 5.3 million tonnes. This achievement was bolstered by Borouge’s strategic positioning in high-growth markets across Asia, the Middle East, and Africa. The company’s strong international marketing network, consisting of 14 sales and marketing offices, has played a crucial role in nurturing relationships with customers and meeting their evolving demands.

Hazeem Sultan Al Suwaidi, chief executive officer of Borouge, said the company has generated substantial earnings growth in 2024 while maintaining strong profitability, at a time when the wider global industry has faced challenges. Al Suwaidi attributed this success to Borouge's commitment to high productivity and innovation, which have allowed the company to adapt to changing market dynamics.

In a move that reflects confidence in its financial stability, Borouge announced an intent to maintain a dividend of $1.3 billion for the 2025 financial year. This decision represents a current dividend yield of 6.3 per cent, signalling the company’s commitment to returning value to its shareholders even as it invests in future growth.

Looking ahead, Al Suwaidi highlighted the Borouge 4 strategic expansion project, which is set to enhance production capacity by nearly one-third. This ambitious initiative aims to bolster the company’s innovation capabilities and drive sales growth in key markets. "The Borouge 4 project will not only transform our production scale but also position us to better serve our customers in major markets," he noted.

Borouge is embarking on a comprehensive digital and AI transformation program, which is already yielding positive results in terms of productivity. This initiative aims to reimagine the company’s operational framework in the coming years, aligning with global trends towards digitalisation and automation.

The broader petrochemical industry has faced challenges in recent years, including fluctuating raw material prices and increased competition. However, Borouge’s strategic initiatives, coupled with its focus on operational efficiency and customer engagement, have positioned it as a leader in the sector.

As the company prepares for 2025, it remains committed to leveraging world-class technology to innovate and provide products that meet evolving customer needs. Borouge’s strong financial performance in 2024 not only underscores its resilience but also sets a promising foundation for future growth in a rapidly changing industry landscape.

Industry analysts said Borouge’s impressive results and strategic initiatives reflect a company well-equipped to navigate the complexities of the global market while continuing to deliver value to its stakeholders.

2025-02-04T13:00:00Z