Borouge Plc delivers 23% QoQ net profit rise despite Ruwais incident
- Q2 revenue $1.4bn, adjusted EBITDA $401m and net profit $191m (Q1 net profit $156m) on sales of 0.9 Mt.
- Average realised prices rose 53% QoQ, driven by global polyolefin tightness and premia for differentiated products.
- Repairs from the 5 April Ruwais incident completed by end‑June; shipped 100% of available production plus additional inventory via road, rail and sea.
- Borouge 4 will add 1.4 Mt capacity; new XLPE plant adds 100,000 t; Borouge International formed 30 March 2026; tender offer expected in 2027.
Q2 financial performance
Borouge Plc reported Q2 2026 revenue of $1.4 billion, adjusted EBITDA of $401 million and net profit of $191 million (Q1 net profit $156 million), supported by sales volumes of 0.9 million tonnes and a 53% quarter‑on‑quarter increase in average realised prices.
Incident response and repairs
An incident on 5 April at the Ruwais complex resulted in temporary suspension of affected production areas. Repair work was expedited during Q2 and full asset availability was restored by the end of June, although production remains subject to feedstock availability.
Logistics and volumes
Production in Q2 was 0.7 million tonnes while sales were 0.9 million tonnes. The company implemented alternative logistics routes (road, rail and sea) to ship all produced volumes and additional inventory, with average utilisation around 60% for the quarter.
Costs and margins
Higher realised prices offset some headwinds, but elevated freight/logistics expenses and higher propylene feedstock costs temporarily compressed EBITDA margins. Repair costs are expected to cause only a limited increase in 2026 maintenance capex.
Growth and shareholder plans
Borouge 4 will increase capacity by 1.4 million tonnes and the new XLPE plant adds 100,000 tonnes of annual capacity. The formation of Borouge International on 30 March 2026 creates a 13.6 Mt global platform; the company maintains an annual dividend intention of 16.2 fils per share and a tender offer to convert shares is expected in 2027, subject to approvals and market conditions.
Source: Borouge