Abu Dhabi-listed Borouge has reported a strong financial performance for the fourth quarter of 2024, posting a 15% year-on-year (YoY) increase in net profit, reaching $331 million. The petrochemicals company attributed this impressive growth to record production levels and higher sales volumes, underscoring its operational efficiency and market expansion strategies. Additionally, Borouge reaffirmed its commitment to delivering value to shareholders by maintaining a $1.3 billion dividend payout for the fiscal year 2025, reflecting confidence in its future earnings and cash flow stability.
In terms of revenue, the company recorded $1.62 billion for the fourth quarter, marking a 1% increase from the previous quarter and an 8% rise compared to the same period in 2023. For the full year, Borouge achieved notable financial milestones:
- Net profit reached $1.24 billion, reflecting a substantial 24% increase from 2023.
- Annual revenue grew to $6.03 billion, a 4% increase YoY.
- Sales volume rose by 8% YoY, with a 3% growth from the last quarter, demonstrating the company’s ability to scale production and cater to increasing demand.
Expanding Market Reach and Production Capacity
Borouge continues to strengthen its presence in high-growth markets across Asia, the Middle East, and Africa. The company’s EBITDA climbed 14% YoY to $2.48 billion, while operating free cash flow surged by 17% to $2.31 billion, supported by a robust cash conversion rate of 93%. These strong financial indicators highlight Borouge’s operational efficiency and ability to generate substantial cash flow to fund its expansion initiatives.
To support long-term growth, the company is undertaking a major expansion of its second ethane cracker unit (EU2), targeting an additional 230,000 tonnes of production capacity by 2028. This investment aligns with Borouge’s strategy to enhance its manufacturing capabilities and meet the increasing global demand for high-quality polyolefins.
Global Expansion and ADNOC Partnership
As part of its ambitious growth strategy, Borouge is exploring opportunities beyond the UAE. The company has initiated a feasibility study for a specialty polyolefins complex in Fuzhou, China, which would further strengthen its foothold in Asia’s lucrative petrochemicals market. This initiative is also backed by its parent companies, ADNOC and Borealis, reinforcing Borouge’s vision of becoming the world’s largest single-site polyolefin complex.
Borouge’s sustained growth trajectory, strong financial performance, and strategic investments in production capacity highlight its commitment to maintaining a leadership position in the global petrochemicals sector. With continued support from ADNOC and Borealis, the company is well-positioned to expand its market share, optimize production, and drive shareholder value in the coming years.