Borouge (BOROUGE) investor relations material

Executive summary

• FY2025 net profit reached $1.1 billion, down 11% year-over-year but surpassing market expectations, with an adjusted EBITDA margin of 37% and a net profit margin of 19%.

• Achieved record annual sales volumes of 5.4 million tonnes and production of 5.1 million tonnes, with Q4 2025 seeing the highest-ever quarterly production (1.46 million tonnes) and a 21% QoQ increase in sales volumes.

• Maintained industry-leading EBITDA margin of 36% in Q4 2025, despite market softness, and demonstrated resilience through operational excellence, innovation, and strong cash generation supporting robust dividend payouts.

• Major restructuring announced: planned merger with Borealis and acquisition of Nova Chemicals for $13.4 billion, forming Borouge Group International (BGI).

• Board changes included several resignations and new appointments during the year.

Financial highlights

• FY2025 revenue totaled $5.85 billion, down 3% year-over-year, with Q4 revenue at $1.68 billion, up 16% QoQ and 3% YoY.

• Adjusted EBITDA for FY2025 was $2.17 billion (37% margin); Q4 adjusted EBITDA reached $601 million (36% margin).

• Net profit margin for FY2025 was 19%; Q4 net profit was $330 million, up 12% QoQ.

• Operating free cash flow for FY2025 was $1.86 billion; Q4 operating free cash flow was $502 million.

• Net debt ended the year at $2.7 billion, with a net debt-to-EBITDA ratio of 1.2x.

Outlook and guidance

• 2026 targets include 105% utilization and ramp-up of Borouge 4, with no major planned turnarounds and scheduled maintenance factored into guidance.

• Long-term polyolefin demand in core markets projected to grow at 4% annually, with global demand growth led by Asia and Middle East & Africa.

• The restructuring and merger with Borealis, and acquisition of Nova Chemicals, are expected to expand global reach and access to growth markets, with implementation anticipated in 2026.

• Dividend intention reaffirmed at 16.2 fils per share for FY2025, with second-half distribution expected in April 2026.

• Management expects continued operational existence and access to sufficient financial resources, despite current liabilities exceeding current assets due to loan classification.