Abu Dhabi:Borouge Plc announced a remarkable performance for the third quarter of 2026, with a 22% increase in sales volumes compared to the previous quarter. The company's production capabilities were significantly restored, with average utilization rising from 60% in the second quarter to 76% in the third quarter, despite regional disruptions.
According to Emirates News Agency, Borouge managed to maintain its supply chain by using alternative logistics routes, avoiding reliance on the Strait of Hormuz. This strategic move allowed the company to ship all available production. The revenue for the quarter increased by 3% quarter-on-quarter to AED5.3 billion (US$1.4 billion), with higher sales volumes compensating for the decline in average realized selling prices.
The company's adjusted EBITDA for Q3 2026 was AED1.02 billion ($279 million), and the net profit stood at AED399 million ($109 million). However, EBITDA margins were impacted by lower average realized selling prices, reflecting the decline in global polyolefin benchmark prices and sustained high costs of freight, logistics, and propylene feedstock.
Borouge's asset availability was fully maintained throughout the quarter, and by the end of Q3, several factors that had impacted performance showed significant improvement. Utilization reached 90% in October, aided by better feedstock availability, and global polyolefin benchmark prices increased compared to Q3 2026. Consequently, the fourth quarter is anticipated to be the strongest of the fiscal year, with a notable improvement in EBITDA driven by increased production volumes and better pricing, despite continued high logistics costs.
Hazeem Sultan Al Suwaidi, CEO of Borouge Plc, highlighted the company's achievements amidst external disruptions, including increased production and sales volumes, strong asset availability, and continued customer service through alternative logistics routes. He expressed optimism for Q4, citing improved feedstock supply, higher production volumes, and enhancing pricing as factors for expected profitability growth.
In Q3 2026, Borouge Plc produced 0.95 million tonnes, up from 0.72 million tonnes in Q2, with sales volumes increasing to 1.07 million tonnes. The company maintained product premia above guidance, supported by robust demand, particularly from infrastructure and energy solutions, which accounted for 39% of sales.
The company paid an interim dividend of 8.1 fils per share in September 2026, with an annual dividend intention of 16.2 fils per share, representing a 7.2% dividend yield. Borouge continued its share buyback programme, demonstrating confidence in its long-term growth prospects.
Borouge International reported an 11% sales growth and an 18.4% EBITDA margin in Q3, while Q4 commenced with momentum from integration progress and synergies. A proposed tender offer to exchange Borouge Plc shares for Borouge Group International AG shares, followed by a listing on the Abu Dhabi Securities Exchange and a capital raise, is planned for 2027, pending market conditions and regulatory approvals. This transaction would provide Borouge Plc shareholders with access to a global polyolefins leader with enhanced resilience and reach.