Borouge reveals a net profit of $193 million in the second quarter of 2025
Borouge Achieves Successful Turnaround and Strong Q2 Performance
Borouge Petrochemical Complex, a leading petrochemical company, has announced impressive results for the second quarter of 2025. The company successfully completed the turnaround of its Borouge 3 (B3) assets eight days ahead of schedule and within budget [1][2]. This major maintenance event involved significant activities across its ethylene, polyethylene, polypropylene, and butene units, ensuring robust operational capacity for the future [2].
The turnaround has positioned Borouge's assets for long-term reliability and sustained margin delivery, enabling high performance of B3 assets for the next six years [1][2]. As a result, Borouge reported a net profit of $193 million in Q2 2025, supported by strong sales volumes of 1.1 million tonnes and robust pricing, particularly in high-value infrastructure and advanced packaging segments [1][4].
Despite some decline in average selling prices compared to the previous year, the company maintained healthy margins and cash flow through disciplined cost management [3]. Borouge also achieved strong pricing premia above product benchmark prices for polyethylene and polypropylene, with $249 per tonne for PE and $141 per tonne for PP [5].
The company's Q2 2025 financials showed an adjusted Ebitda of $440 million, with an Ebitda margin of 34% [6]. High-value products accounted for 41% of total volumes in Q2 2025 [7]. Borouge closed the quarter with a net debt-to-Ebitda ratio of 1.0x [8].
Looking ahead, Borouge aims to increase petrochemical sales to China during 2025, leveraging the enhanced asset performance from the turnaround [2]. The company's shareholders—Abu Dhabi National Oil Company (ADNOC) and Austria’s OMV—are progressing with a proposed transaction to combine Borouge with Borealis (largely owned by OMV and ADNOC) and acquire Nova Chemicals, forming Borouge Group International. This transaction is on track to close in Q1 2026, with regulatory filings and integration planning underway [1][2].
Borouge also reaffirmed its intention to increase the FY2025 dividend to 16.2 fils per share, up from 15.88 fils in 2024, reflecting confidence in its financial outlook post-turnaround [1][3].
Summary:
| Aspect | Details | |-------------------------------|-------------------------------------------------------| | Turnaround Status | Successfully completed ahead of schedule; major maintenance done; assets positioned for 6 years high performance[1][2] | | Q2 2025 Financials | Net profit $193M; 1.1 million tonnes sales; strong margins[1][3][4] | | Production Capacity Highlights | Ethylene: 1.48 Mt/year; Multiple polyethylene and polypropylene plants with combined capacities exceeding 2 million tonnes/year[2] | | Future Plans | Increase sales to China; Close Borouge Group International transaction in Q1 2026[1][2] | | Dividend Outlook | Increased FY2025 dividend to 16.2 fils per share[1][3] |
In conclusion, Borouge is operating with enhanced asset reliability post-turnaround and aims to grow its market presence, particularly in China, while advancing a major strategic integration with Borealis and Nova Chemicals in 2026. Capital expenditure in Q2 2025 amounted to $130 million. Average selling prices decreased 1% quarter-on-quarter and 3% year-on-year in Q2 2025. Borouge reported revenue of $1.31 billion in Q2 2025, a decrease from $1.5 billion in Q2 2024. Since its listing in 2022, Borouge has paid a total of $3.58 billion in dividends to shareholders.
- Despite a minor decline in quarterly average selling prices, Borouge maintained healthy profits and cash flow, demonstrating the success of its disciplined cost management strategy.
- In light of its ongoing operational success, Borouge has announced plans to expand its market presence in the entertainment and environmental industries, particularly in China, to capitalize on growing demand.
- The healthcare industry will benefit from Borouge's continued production of high-value petrochemicals, as these products are integral to various medical applications, including advanced packaging segments.
- Meanwhile, the finance and business sectors will closely monitor Borouge's performance in the industrial and business-to-business sectors, as the company's solid Q2 2025 financials and strategic integration with Borealis and Nova Chemicals position it for future growth opportunities.
