Borouge (BOROUGE) Q2 2026 earnings summary

Executive summary

• Q2 2026 performance was resilient despite regional disruptions and asset damage at Ruwais, with full production restored by end of June and uninterrupted deliveries ensured through alternative logistics routes.

• Net profit for Q2 2026 was $191 million, up 23% quarter-on-quarter, with H1 2026 net profit at $346.56 million, reflecting a year-on-year decline due to margin pressure.

• Record price premia for polyethylene ($438/t) and polypropylene ($282/t) offset higher feedstock and logistics costs, supporting revenue and profitability.

• Borouge International was formed in March 2026, making the group the fourth-largest polyolefins producer globally and enhancing scale and diversification.

Financial highlights

• Q2 2026 revenue reached $1.4 billion, up 20% quarter-on-quarter and 8% year-on-year, driven by a 53% increase in average selling prices.

• Adjusted EBITDA was $401 million (29% margin), up 17% quarter-on-quarter but down 9% year-on-year.

• Net profit for Q2 2026 was $191 million, compared to $156 million in Q1 2026.

• Adjusted operating free cash flow was $287 million in Q2 2026 (71% cash conversion).

• Selling and distribution expenses rose sharply due to elevated logistics costs, reaching $254/ton.

Outlook and guidance

• Full production availability restored; H2 2026 performance depends on Strait of Hormuz access, with high utilization rates expected if maritime traffic and feedstock supply normalize.

• Market prices expected to moderate in Q3 but remain above historical averages; demand in core markets stable.

• Minimum annual dividend intention of 16.2 fils per share reaffirmed.