Borouge Reports $193 Million Q2 2025 Net Profit, Confirms Higher Dividend Plans Amid Strong Operational Execution
Borouge a leading petrochemicals company specialising in innovative polyolefins solutions, has announced a net profit of $193 million for the second quarter of 2025, outperforming market expectations. The strong performance was driven by the successful execution of a major maintenance turnaround at its Borouge 3 facility, which was completed ahead of schedule and within budget. Despite the associated production constraints, the company maintained healthy margins and strong cash generation, highlighting its operational discipline and strategic agility.
Borouge 3 Turnaround Delivered Ahead of Schedule
The second quarter was marked by the planned maintenance shutdown of Borouge 3, the company’s most extensive and complex turnaround to date. Completed eight days ahead of schedule, the shutdown demonstrated best-in-class planning and execution, reducing expected downtime by 15%. These six-year maintenance cycles are essential for ensuring long-term asset integrity, operational safety, and maintaining high utilisation rates.
Even during this planned operational pause, Borouge delivered solid performance metrics. Adjusted EBITDA for Q2 2025 reached $440 million, with a robust EBITDA margin of 34%, supported by optimisation across the company’s high-value product mix. The successful turnaround reaffirmed Borouge’s technical capabilities and focus on cost efficiency, particularly in a softer pricing environment.
Strong Margins Amid Market Headwinds
Borouge sustained strong pricing premia despite modest declines in average selling prices, which fell 1% quarter-on-quarter and 3% year-on-year. Polyethylene (PE) prices remained stable, while polypropylene (PP) saw slight declines in line with broader market trends. Nevertheless, Borouge achieved pricing premia of $249 per tonne for PE and $141 per tonne for PP—both above its long-term guidance—thanks to its high-value product portfolio and agile sales strategy.
Total revenue for Q2 was $1.31 billion, down from $1.5 billion in Q2 2024, due to the impact of the planned turnaround. However, the company was able to mitigate volume losses through inventory sales, with 140 kilotonnes of stored product released during the quarter. Overall sales volumes reached 1.1 million tonnes, remaining relatively stable quarter-on-quarter.
Operational Resilience and Financial Strength
Borouge’s performance underscores its resilience in navigating scheduled operational pauses without compromising financial stability. The company’s capital expenditure for the quarter totalled $130 million. It maintained a strong net debt-to-EBITDA ratio of 1.0x, reflecting prudent capital management and financial flexibility.
For the first half of 2025, Borouge reported total revenue of $2.72 billion, compared to $2.81 billion in H1 2024. Adjusted EBITDA reached $1.0 billion, with margins supported by continued pricing strength and inventory optimisation. Sales volumes totalled 2.39 million tonnes, reflecting a modest 2% decline year-on-year, largely due to the scheduled maintenance activities.
Reaffirmed Commitment to Shareholder Returns
Reflecting its confidence in the underlying business and long-term value creation, Borouge reaffirmed its intention to increase its full-year 2025 dividend to 16.2 fils per share. This includes a proposed interim dividend of 8.1 fils per share for H1 2025, scheduled for distribution in September, subject to shareholder approval at the General Assembly in August.
This proposed increase marks a step up from the 15.88 fils per share dividend distributed in 2024 and represents a projected yield of 6.1% based on the current share price—among the highest on the Abu Dhabi Securities Exchange (ADX). Borouge’s updated dividend framework also signals its intent to maintain this level of payout through 2030 under the newly planned Borouge Group International structure.
Since its public listing in 2022, Borouge has distributed a total of $3.58 billion in dividends. The company’s ongoing share buyback programme, approved at its April AGM, further reflects its confidence in future prospects. By the end of Q2 2025, Borouge had repurchased 125 million shares, with all transactions disclosed in accordance with ADX regulations.
Borouge 4: Future Growth Engine
Looking ahead, the company is progressing with the development of its Borouge 4 expansion project. Once operational by the end of 2026, Borouge 4 will add 1.4 million tonnes of annual production capacity. The facility is being built with Borstar® third-generation (3G) technology, designed to deliver value-added, sustainable polyolefin solutions, particularly suited to growing infrastructure and packaging demand.
Borouge 4 is also expected to become a cornerstone asset within the proposed Borouge Group International platform, to which it will be transferred at cost. This transaction is anticipated to unlock substantial embedded value for shareholders, while supporting Borouge’s ambition to lead in low-carbon, high-performance polymer applications across global markets.
Leading Innovation Through AI and Digitalisation
As part of its digital transformation agenda, Borouge continues to invest in advanced technologies under its AI, Digitalisation, and Technology (AIDT) programme. Year-to-date, the initiative has generated $307 million in value. A highlight of 2025 has been the proof-of-concept launch of the petrochemical industry’s first AI-powered control room, developed in collaboration with Honeywell. This system enables autonomous operations at Borouge’s Ruwais facilities, enhancing decision-making, efficiency, and safety.
In parallel, Borouge is integrating MEERAi, ADNOC’s AI-powered executive advisor, into its board meetings. MEERAi delivers real-time, data-driven insights that enable more responsive, informed strategic decisions.
The AIDT programme has earned Borouge multiple accolades, including the GPCA Supply Chain Innovation Award and the Industry Eagle Awards, highlighting its leadership in industrial innovation and digital transformation.
Expanding Differentiated Product Offerings
On the product innovation front, Borouge is strengthening its portfolio in the healthcare and advanced packaging sectors. The company recently signed a strategic agreement with Mubadala Bio to supply polyolefins for medical devices and pharmaceutical packaging, aligning with the UAE’s “Make it in the Emirates” initiative.
Borouge also introduced Bormed™ RG868MO—the UAE’s first locally manufactured medical-grade polyolefin—and expects to launch a second healthcare-grade product later this year. In advanced packaging, the upcoming release of Borstar™ BH555MO, a recyclable mono-material polypropylene grade, will further advance circular economy goals by enabling higher recycled content, lightweighting, and lower carbon emissions.
