Borouge’s Net Profit Surges 24% to Record $1.24 Billion

Record Production, Sales, and Strategic Growth Drive Unprecedented Financial Success

Borouge, the Abu Dhabi-based petrochemical giant, has reported a stellar financial performance for 2024, posting a net profit of $1.24 billion—a remarkable 24% increase from the previous year. The company attributed its record-breaking growth to unprecedented production and sales volumes, reaffirming its strong market positioning and operational excellence.

Unmatched Operational Efficiency and Growth

Borouge has consistently outperformed many of its global peers, maintaining an impressive EBITDA margin of 41% for the full year. The company’s EBITDA rose 14% year-on-year to $2.48 billion, fueled by a 4% increase in revenue, which reached $6 billion. These robust figures highlight Borouge’s ability to navigate a complex global market and sustain profitability amidst industry challenges.

At the heart of this success was the company’s record production of 5.2 million tonnes, underpinned by exceptional utilization rates—110% for polyethylene and 98% for polypropylene. This operational efficiency has allowed Borouge to maximize its production potential and set new industry benchmarks.

Sales volumes also reached an all-time high of 5.3 million tonnes, supported by the company’s strategic presence in high-growth regions across Asia, the Middle East, and Africa. Borouge’s extensive international marketing network, comprising 14 sales and marketing offices, has been instrumental in strengthening customer relationships and meeting evolving market demands.

Strong Leadership and Forward-Looking Strategy

Hazeem Sultan Al Suwaidi, CEO of Borouge, emphasized the company’s ability to achieve substantial earnings growth while maintaining strong profitability, even as the wider petrochemical industry faced global headwinds. “Our commitment to high productivity and innovation has enabled us to adapt to changing market dynamics and maintain a strong financial position,” Al Suwaidi stated.

Reflecting confidence in its financial strength, Borouge announced its intention to maintain a $1.3 billion dividend for the 2025 financial year, offering a dividend yield of 6.3%. This move underscores the company’s commitment to delivering value to shareholders while continuing its investment in long-term expansion.

Strategic Expansion and Digital Transformation

Looking ahead, Borouge is preparing for a significant capacity boost through its Borouge 4 expansion project, which aims to increase production by nearly one-third. This ambitious initiative will enhance the company’s innovation capabilities and expand its reach in key global markets. “Borouge 4 will not only elevate our production scale but also strengthen our ability to serve customers with cutting-edge solutions,” Al Suwaidi remarked.

In addition, Borouge is embracing a comprehensive digital and AI transformation program, which is already delivering measurable improvements in productivity and efficiency. This initiative aligns with global trends towards digitalization and automation, reinforcing the company’s long-term vision for sustainable growth.

Resilience in a Competitive Market

Despite industry-wide challenges, including fluctuating raw material prices and intensified competition, Borouge has maintained its leadership through strategic investments, operational efficiency, and strong customer engagement. As the company moves into 2025, it remains committed to leveraging world-class technology to drive innovation and deliver high-performance products tailored to evolving market needs.

Industry analysts highlight Borouge’s impressive results as a testament to its resilience and forward-thinking approach. With record financial performance, strategic expansion, and a robust digital transformation roadmap, Borouge is well-positioned to navigate the complexities of the global petrochemical industry while continuing to deliver exceptional value to its stakeholders.