Borouge Q3: Volumes up 22% and positioned for stronger Q4

Quarterly performance

Revenue rose 3% QoQ to $1.4 billion. Adjusted EBITDA for Q3 was $279 million and net profit $109 million. EBITDA was constrained by lower average realised selling prices, elevated freight and logistics costs, and higher propylene feedstock costs, despite full technical asset availability.

Production and volumes

Average utilisation recovered from 60% in Q2 to 76% in Q3, enabling production of 0.95 million tonnes and sales of 1.07 million tonnes (up 22% QoQ). Improved ethane supply and alternative logistics routes allowed all available production to be shipped without dependence on the Strait of Hormuz; utilisation exceeded 90% in October.

Pricing and product mix

Average realised selling prices declined QoQ versus the Q2 peak but were up 22% year on year. Product premia remained well above guidance at $301/tonne for polyethylene and $156/tonne for polypropylene, with 39% of sales in infrastructure and energy solutions.

Growth projects and integration

Borouge 4 reached mechanical completion for the PE7 plant (+700,000 tpa) and the XLPE plant recorded 20 kt of sales, adding up to 100 ktpa capacity. Borouge International integration identified over $500 million of annual run-rate EBITDA synergies, with ~$200 million already at run-rate; a tender offer and listing are targeted for 2027.

Outlook and shareholder returns

Q4 is expected to be the strongest quarter of FY2026 with substantially improved EBITDA from higher volumes and better pricing, subject to stable regional conditions. An interim dividend of 8.1 fils was paid and the annual intention of 16.2 fils per share was reaffirmed.