Borouge Q1 2026: $156M Net Profit on Operational Resilience

Financial and operating results

Borouge reported Q1 revenue of $1.2 billion, adjusted EBITDA of $343 million and net profit of $156 million; production totaled 1.21 million tonnes (98% of nameplate capacity) and sales were 1.09 million tonnes.

Logistics and production disruptions

Following Strait of Hormuz disruptions, 61% of March production was rerouted via alternative logistics channels and higher freight costs were absorbed into pricing; global polyolefins prices rose 62% in March and Q1 average selling price was $47/t higher versus Q4 2025. An incident on 5 April caused asset damage and temporary suspension of affected lines; phased restarts are underway and unsold March volumes were held in inventory for sale into higher Q2 prices.

Corporate transactions and dividends

Borouge International formation was completed on 30 March 2026, creating the fourth-largest polyolefins producer by nameplate capacity; a tender offer to convert shares is expected in 2027 subject to UAE CMA approval. Shareholders approved $1.32 billion of FY2025 dividends at the AGM on 7 April 2026, with the final $658 million payment scheduled on or around 5 May 2026 (record date 17 April 2026). Under an agreement with ADNOC and OMV, Borouge obtained operational control and marketing rights for the Borouge 4 project with no upfront capex and an expected cumulative net profit of about $400 million over three years after ramp-up.

Digitalisation and operations

The company reported $143 million in value generation from its AI digitalisation and technology programme and advanced 3D printing and digital warehouse initiatives to cut lead times and lower inventory carrying costs.