Borouge (BOROUGE) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 production of 1.39 million tons, with net profit up 52% quarter-on-quarter to $295 million, driven by operational recovery and high utilization rates exceeding 110%.

• Maintained industry-leading EBITDA margin of 39% in Q3 2025, three times the peer group average.

• Reaffirmed full-year 2025 dividend guidance of 16.2 fils per share, with ongoing share buyback program.

• Profit for the nine months ended 30 September 2025 was USD 768.77 million, down from USD 908.22 million year-over-year.

• Principal activities include production and trading of polyolefins through subsidiaries in UAE, Singapore, and other countries.

Financial highlights

• Q3 2025 revenue reached $1.447 billion, up 11% quarter-on-quarter but down 10% year-on-year due to lower benchmark prices.

• Adjusted EBITDA rose 28% quarter-on-quarter to $565 million, with a margin of 39%.

• Net profit margin stood at 18% in Q3; nine-month net profit was $769 million, reflecting resilience in a challenging market.

• Operating free cash flow increased 68% quarter-on-quarter to $525 million, with a 93% cash conversion ratio.

• Cash and cash equivalents at period end were USD 197.2 million, down from USD 418.5 million at year-end 2024.

Outlook and guidance

• Stable macroeconomic environment expected in core markets, with demand in target regions outperforming but benchmark pricing to remain soft in Q4.

• Premium guidance unchanged at $200/ton for PE and $140/ton for PP; XLPE specialty production from Borouge 4 to commence by year-end.

• Major restructuring planned: Borouge PLC and Borealis to combine into Borouge Group International, acquiring Nova Chemicals for USD 13.4 billion, with implementation expected in 2026 pending regulatory approvals.

• High utilization rates and focus on high-value segments expected to continue supporting margins and growth.

• BGI transactions on track for Q1 2026 close, with over $500 million in annual EBITDA synergies anticipated.