Abu Dhabi-listed petrochemicals producer Borouge reported a sharp decline in net profit for the first quarter of 2026, with logistics disruptions in March weighing on revenues.
Net profit for the January to March period fell to $156 million, representing a 45 percent decrease compared to the same period last year.
Revenue declined by 17 percent to $1.2 billion, despite the company deploying alternative distribution channels to mitigate the impact of the Strait of Hormuz blockade.
The company noted in a filing to the Abu Dhabi Securities Exchange that increased logistics and freight costs were incorporated into its pricing strategy.
Production during the first quarter operated at 98 percent capacity, reaching 1.21 million tonnes. Polyolefin prices surged by 62 percent in March, supported by a global supply shortage, and are expected to have remained elevated in April, underpinning the company’s full-year outlook.
In April, Borouge’s production facilities in the Ruwais Industrial Area sustained damage amid the conflict.
Following initial repair work and a phased restart, most production units are now operational, with utilisation levels gradually increasing, according to the company.
Additionally, inventory accumulated from unsold March output is being released into a stronger pricing environment in the second quarter.
Borouge’s shares were trading 0.8 percent lower at AED2.51 on Thursday and have declined 5 percent since the beginning of the year.
Borouge Group International (BGI) holds a 90 percent stake in Borouge, based on data from the exchange.
BGI is a $60 billion joint venture formed through the integration of Borouge, Europe-based Borealis, and Canada’s Nova Chemicals.
