Borouge International Q3 2026 results and Q4 outlook

Results and margins

Borouge International reported Adjusted EBITDA of $2.7 billion in the first six months of combined operations, at a margin of 26%. Adjusted EBITDA was $899 million in Q3; lower polyolefin benchmark prices in Q3, particularly in Europe where naphtha costs remained elevated, were the principal driver of the quarter-on-quarter decline.

Operational recovery and volumes

Sales volumes increased 11% in Q3 to 2,611 kt, driven by a 52% rise in sales to Asia as UAE ethane supply recovered. Production ramped through the quarter with plants in North America and Europe running at high rates and UAE utilization improving to above 90% in October. Commissioning of the new 700 kt PE7 unit at Borouge 4 began in October.

Cash generation and integration

Free cash flow was $1.2 billion in the first six months, including $1.1 billion in Q3, supported by a significant working capital release from receivables collection. Integration initiatives identified within six months represent $200 million of annual run‑rate EBITDA synergies (about 40% of the >$500 million five‑year target); these initiatives span procurement, SG&A and commercial optimisation, and are expected to start contributing in Q4 2026, with one‑off implementation costs of $150 million.

Outlook and capital plans

Management expects Q4 performance to improve materially versus Q3 due to higher October benchmark prices, rising UAE output, lower logistics costs and initial synergy contributions, with Borouge Plc anticipating its strongest quarter of 2026. Borouge International intends to list on the Abu Dhabi Securities Exchange in 2027, followed by a Vienna listing, and to run a tender offer and capital raise subject to regulatory approvals and market conditions.