UAE petrochemical company Borouge reported strong financial results for the first six months of 2022, with a 16.4% increase in revenue to $3,460 million for the first half of 2022, compared to the same period last year, driven by sales volume growth of 8.6 percent and average price per tonne growth of 4.1 percent.
In its first earnings as a publicly traded company, Borouge said adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 1.7% to $1,512 million, while net income rose 2.5% to $853 million.
Second quarter revenue increased 17.6%, while adjusted EBITDA increased 35.5% from the prior quarter. This was achieved despite higher underlying raw material prices, as Borouge optimized raw material agreements to reduce overall production costs per tonne compared to the prior quarter.
In our first financial results since our historic listing on the ADX, we delivered strong performance. The outlook for the year remains positive as we continue to deliver exceptional returns to our shareholders.#Borouge pic.twitter.com/XDwz95aR4G
—Borouge (@Borouge) July 28, 2022
In the first half of 2022, Borouge experienced overall production capacity growth of 6.9% year-on-year (YoY) as the ramp-up of the new PP5 plant and the turnaround of Borouge 1 in the first quarter ( B1) were completed, helping to generate 8.6% annual growth in overall sales volumes. June 2022 saw the highest sales volumes ever in a single month, with an increasing proportion of products sold in the infrastructure solutions market.
Dr. Sultan Al Jaber, Minister of Industry and Advanced Technologies of the United Arab Emirates, ADNOC MD and Group CEO, and Chairman of Borouge, said: “Borouge has recorded double-digit revenue growth in its first half-year results as a listed company, showing exceptional results. financial performance and business resilience. These impressive results follow the company’s record IPO on the Abu Dhabi Stock Exchange in June this year.
“Borouge is central to the implementation of ADNOC’s ambitious downstream and industrial growth strategy and is poised for robust future growth, benefiting from the global boom in the petrochemical sector. ADNOC, alongside its long-time partner Borealis, will remain a committed and long-term majority shareholder of Borouge as the company continues its exciting growth trajectory while delivering exceptional value and superior returns for shareholders.” he added.
Borealis CEO Thomas Gangl said, “Shareholders are pleased with Borouge’s continued strong results in its first earnings announcement following its successful IPO. The company’s strong performance, combined with the long-term partnership between Borealis and ADNOC, provides the platform for future growth. »
Hazeem Sultan Al Suwaidi, CEO of Borouge, said: “We recorded significant growth in sales volumes during the first half of 2022 and continue to achieve strong premiums above benchmark prices, reflecting our differentiated products at added value and our innovative solutions that have a positive effect. impact on society. We are very optimistic about the future growth of the business, and we remain committed to delivering exceptional value and paying an attractive dividend to our shareholders.
In June 2022, Borouge was listed on the Abu Dhabi Stock Exchange in the largest initial public offering ever in Abu Dhabi and the largest petrochemicals listing ever in the Middle East. Recently, Borouge also announced a new step in the construction of the Borouge 4 extension in Ruwais.
Start of construction of Borouge 4 in Ruwais, first phase in progress
ADNOC begins the process of listing Borouge on the Abu Dhabi Stock Exchange