Borouge, a prominent chemical producer and a significant player in the UAE's industrial landscape, has announced impressive earnings for the first half of the fiscal year, showcasing a remarkable increase attributed to record production volumes and a robust strategy focused on expansion. In its latest earnings report, Borouge revealed a striking 35% year-over-year growth in profit, recording an impressive $581 million for the six-month period ending June 30.
Revenue remained relatively stable, with figures hovering slightly above last year at $2.81 billion compared to $2.80 billion. During this period, the company's sales volume increased by 4%, underscoring its position as the leading chemicals producer in the United Arab Emirates, supported by record-high production levels. The company has also reported exceptional operational efficiencies, achieving utilization rates of 114% for polyethylene production and 103% for polypropylene during the second quarter.
These figures highlight Borouge's commitment to maximizing its production capabilities and meeting the growing demand for its products. Looking ahead, Borouge is optimistic about future prospects, expecting demand to rise, particularly from the Chinese market. The company is banking on economic stability across its key markets, which aligns with its ambitious financial goals, including a planned $1.3 billion dividend payout for the full year of 2024, maintaining the same level as in 2023. To facilitate its growth trajectory, Borouge has made strategic decisions, notably delaying the scheduled maintenance of its Borouge 3 plant.
Initially planned for the fourth quarter of 2024, this maintenance has now been postponed to the second quarter of 2025. This strategic delay is anticipated to add between $20 million and $40 million to the company's EBITDA, reinforcing its financial health and investment opportunities. Borouge's Chief Executive, Hazeem Sultan Al Suwaidi, emphasized the company's transformative vision for expanding production capabilities.
"We will deliver a transformational increase in production volumes through the Borouge 4 complex, our second ethylene unit EU2, and as part of a consortium that is drafting plans for a new speciality polyolefins plant in China. Furthermore, our ambitious artificial intelligence program is powering growth and enhancing productivity, safety, and sustainability, unlocking significant financial value,” he stated.
As of early afternoon trading on Abu Dhabi's stock exchange, Borouge's stock prices were showing modest gains, reflecting market confidence in the company’s strategic direction and financial performance..