Borouge Reports Strong FY2025 Results with $1.1 Billion Net Profit
Borouge Plc (ADX: BOROUGE / ISIN: AEE01072B225) announced exceptional financial and operational performance for the full year 2025, delivering a net profit of $1.1 billion. The company achieved an industry-leading adjusted EBITDA margin of 37% and a net profit margin of 19%, underscoring strong resilience despite softer benchmark pricing in the second half of the year.
In the fourth quarter of 2025, net profit rose 12% quarter-on-quarter to $330 million, supported by record production volumes, higher sales, and strong plant utilisation. For the full year, Borouge produced 5.1 million tonnes, exceeding nameplate capacity, and successfully completed the largest turnaround in its history during Q2. A continued emphasis on high-value product segments and optimised regional sales enabled the company to maintain strong pricing premia, reaching $224 per tonne for polyethylene (PE) and $134 per tonne for polypropylene (PP).
Chief Executive Officer Hazeem Sultan Al Suwaidi highlighted Borouge’s resilience and profitability, noting that the company remains the world’s most profitable polyolefins producer. He emphasised sustained pricing premia, record quarterly production and sales, and the company’s commitment to long-term shareholder value, including a proposed 16.2 fils per share dividend for FY2025.
Record Production and Sales Drive Q4 Performance
Borouge delivered its strongest quarterly operational performance in Q4 2025, achieving record production of 1.46 million tonnes alongside peak utilisation rates. Operational strength was further enhanced by the successful and ahead-of-schedule completion of the Borouge 3 plant turnaround in Q2—its most complex maintenance programme to date.
Higher production enabled sales volumes to increase 21% to a record 1.64 million tonnes, contributing to a 16% quarter-on-quarter rise in revenue to $1.68 billion and continued profit growth. The company sustained strong pricing above industry benchmarks, reflecting the strength of its differentiated product portfolio.
Strategically, Borouge maintained a focus on high-value infrastructure solutions, which represented 39% of Q4 sales volumes, up three percentage points from the previous quarter. Regionally, the Asia Pacific accounted for 59% of sales, while the Middle East and Africa contributed 32%, demonstrating effective market prioritisation based on netback optimisation.
Full-Year Financial Performance Reflects Resilience
For FY2025, generated $5.85 billion in revenue and achieved annual sales volumes of 5.4 million tonnes, the highest in the company’s history. Although benchmark prices softened in the latter half of the year, strong product premia helped preserve margins.
Adjusted EBITDA reached $2.17 billion, maintaining a robust 37% margin, supported by differentiated products and steady demand in premium segments. Net profit of $1.1 billion delivered a 19% margin, reflecting disciplined cost management and operational efficiency across production and commercial activities.
Dividend Commitment and Shareholder Returns
Borouge reaffirmed its intention to distribute a 16.2 fils per share dividend for FY2025, with the second-half payment expected in April 2026, subject to shareholder approval. This dividend policy is anticipated to continue under the future Borouge Group International structure through at least 2030, pending regulatory approvals.
During 2025, the company also progressed its share buyback programme, repurchasing 212 million shares by the end of Q4. Borouge’s consistent dividend performance earned recognition through inclusion in the FTSE ADX Dividend Stars Index, highlighting its position among the highest and most reliable dividend payers on the Abu Dhabi Securities Exchange.
Value Creation Through Efficiency, AI and Innovation
Building on $607 million in efficiencies delivered through its 2023 Value Enhancement Programme and continued progress in 2024, Borouge sustained strong cost discipline and revenue optimisation throughout 2025. These efforts supported resilient operational performance despite challenging market dynamics.
The company generated $717 million in value via its AI, Digitalisation and Technology programme, exceeding its $575 million target. A successful proof of concept with Honeywell positions to introduce the petrochemical sector’s first fully AI-driven autonomous control room at its Ruwais complex.
Innovation remained a key growth driver. this company launched 10 new products in 2025, including the UAE’s first locally produced healthcare-grade low-density polyethylene (LDPE), advanced materials for ROX Motors’ new-energy vehicles, and circular solutions such as the Recleo™ recycled polyolefin portfolio and a Borstar® advanced packaging product that reduces energy consumption and food waste. Collectively, the innovation portfolio generated a record $94 million in value.
Sales of circular products increased 20% year-on-year, reflecting rising demand for sustainable materials. Since launching its energy efficiency roadmap in 2018, It has reduced emissions by more than 500 kilotonnes of CO₂ annually by 2025 and expanded reporting to include Scope 3 emissions, strengthening value-chain decarbonisation efforts.
Expansion Projects Strengthen Future Growth
Borouge continues to advance several strategic growth initiatives. The Borouge 4 mega project is expected to add 1.4 million tonnes of annual production capacity once fully operational, significantly enhancing earnings potential and global market reach. Commissioning of XLPE 2, the first Borouge 4 facility designed for specialised wire and cable materials, began in late 2025 with start-up targeted for Q1 2026. Additional Borouge 4 units are scheduled for commissioning throughout 2026.
Engineering progress also continued across cracker expansion projects. Front-End Engineering Design for the EU2 ethane cracker expansion has been completed, with an EPC contract award anticipated later in 2026. EPC work has already been awarded for PE4 and PE5 unit upgrades, while feasibility studies for the EU3 cracker expansion are complete and moving into pre-FEED development.
Formation of Borouge Group International
The planned creation of Borouge Group International remains on track for completion in Q1 2026, with most regulatory approvals already secured. The new global polyolefins leader will combine Borouge, Borealis, and the acquisition of NOVA Chemicals, subject to final approvals.
Following completion, the combined entity is expected to deliver over $500 million in annual EBITDA synergies, with 75% realised within three years. This transformation is designed to enhance scale, strengthen competitiveness, and unlock long-term value for shareholders.
Source Link : https://www.borouge.com/
