01/05/2026 03:37 AST
Borouge, an Abu Dhabi-based petrochemicals company, reported a resilient performance in Q1 2026 despite regional instability and logistics disruptions.
The company generated revenue of $1.2 billion, with adjusted EBITDA of $343 million and net profit of $156 million.
Production reached 1.21 million tonnes, operating at 98 per cent of nameplate capacity, reflecting strong operational execution and efficiency.
Regional tensions affecting the Strait of Hormuz disrupted logistics, but Borouge successfully adapted by rerouting 61 per cent of March production through alternative channels.
Unsold volumes were stored and positioned for sale in a stronger pricing environment. The company also prioritised safety and asset integrity while maintaining continuity of supply.
Hazeem Al Suwaidi, Chief Executive Officer of Borouge , commented: "We would like to recognise our people for their unwavering professionalism and commitment despite significant challenges in the region. We delivered a resilient Q1 2026 performance, reflecting strong execution, operational excellence and continuous cost discipline. Our business continuity plans have been tested and proven. With global prices showing encouraging signs of recovery and as market conditions improve, we are well positioned to translate this opportunity into earnings, maintaining reliable supply for our customers, and continuing to deliver sustainable value for our shareholders."
An incident on April 5 at the Ruwais Industrial Area caused damage from falling debris after air defence interception.
Some production lines were temporarily suspended, but phased restarts have since restored most capacity, with operations now ramping up again.
Market conditions were favourable, with polyolefin prices rising 62 per cent in March due to global supply shortages and strong demand for Borouge's specialty products.
Although early-quarter pricing was lower, the upward trend supported improved average selling prices, and the company maintained price premiums over benchmarks.
Higher logistics costs were absorbed through pricing strategies, preserving margins.
Borouge also continued to enhance shareholder value. Shareholders approved $1.32 billion in dividends for FY2025, with a final $658 million payment scheduled for May 2026.
A strategic agreement with Adnoc and OMV grants Borouge operational control of the Borouge 4 project with no upfront capital requirement, expected to add $400 million in cumulative net profit over three years and deliver around 10 per cent annual earnings accretion post ramp-up.
Digital transformation initiatives contributed $143 million in value through AI, automation, and 3D printing of spare parts, improving efficiency and reducing costs.
Finally, the formation of Borouge International on March 30, 2026, created the world's fourth-largest polyolefins producer by capacity, enhancing global scale, diversification, and long-term competitiveness while reinforcing shareholder return commitments.
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