The Abu Dhabi-listed petrochemicals producer said revenue rose 3 per cent from the previous quarter to $1.4 billion, supported by higher sales volumes that offset a decline in average selling prices.
Adjusted earnings before interest, taxes, depreciation and amortisation reached $279 million during the quarter.
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The company said its profitability was affected by lower global polyolefin benchmark prices, elevated freight and logistics costs, and higher propylene feedstock expenses.
Despite these pressures, Borouge expects the fourth quarter to be its strongest of 2026, supported by improved feedstock availability, higher production and a recovery in selling prices.
Production recovers as supply improves
Borouge’s average plant utilisation increased from 60 per cent in the second quarter to 76 per cent in the third quarter, before rising to around 90 per cent in October.
The recovery was supported by improved ethane supply, allowing the company to bring more production capacity back into operation.
Production increased to 950,000 tonnes in Q3, compared with 720,000 tonnes in the previous quarter.
Sales volumes rose to 1.07 million tonnes from 870,000 tonnes, supported partly by increased exports to Asian markets.
The company said its production constraints were driven by external factors, while its assets remained technically available throughout the quarter.
Shipments continue despite regional tensions
Borouge said it maintained customer deliveries through alternative logistics routes, shipping all available production without relying on the Strait of Hormuz.
The company said the regional operating environment continued to affect freight and logistics costs during the quarter.
Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge Plc, said the company had managed to increase production and sales despite challenging conditions.
“The third quarter was an exceptional period, shaped by ongoing external disruption across our operating environment,” he said.
He added that Borouge entered the fourth quarter with improved feedstock supplies, higher production volumes and better pricing conditions.
“We expect a substantial improvement in profitability in the fourth quarter,” Al Suwaidi said.
The company cautioned that its outlook remains dependent on no material deterioration in regional operating conditions.
Prices remain under pressure
Although average realised selling prices increased 22 per cent year-on-year, they declined compared with the second quarter as global polyolefin benchmark prices eased from their earlier peak.
Borouge maintained product price premiums of $301 per tonne for polyethylene and $156 per tonne for polypropylene, both above its guidance.
Demand for specialised polyolefin products remained resilient, with infrastructure and energy solutions accounting for 39 per cent of sales.
Borouge 4 expansion progresses
The company continued to advance its Borouge 4 growth project, which is expected to increase polyethylene production capacity by 1.4 million tonnes annually.
Borouge said it had completed mechanical construction and commissioning of the PE7 plant, adding 700,000 tonnes of capacity.
The plant is the first of two polyethylene units using Borstar 3G technology.
The company’s new cross-linked polyethylene (XLPE) plant also continued increasing production, recording 20,000 tonnes of sales during Q3.
The facility adds up to 100,000 tonnes of annual production capacity, doubling Borouge’s XLPE output.
The company said the additional capacity would support growing demand for electricity transmission and data centre infrastructure across Asia and the Middle East.
Dividend yield of 7.2%
Borouge paid an interim dividend of 8.1 fils per share in September 2026 and reaffirmed its intention to distribute 16.2 fils per share for the full year.
The planned annual dividend represents a yield of 7.2 per cent based on the company’s closing share price on October 28.
Borouge also continued its share buyback programme.
Borouge International listing planned for 2027
The company said integration work at Borouge International was progressing, with more than $500 million in annual run-rate EBITDA operational synergies identified.
Approximately 75 per cent of these synergies are targeted to be realised within three years of completing the integration.
Borouge International, formed in March 2026, has annual production capacity of 13.6 million tonnes across 30 manufacturing sites, making it the world’s largest pure-play polyolefins producer by nameplate capacity, according to the company.
The group recorded sales growth of 11 per cent and an EBITDA margin of 18.4 per cent in Q3.
Annualised synergies already achieved have reached a run-rate of $200 million.
The proposed share exchange offer for Borouge Plc shareholders, followed by the listing of Borouge Group International AG on the Abu Dhabi Securities Exchange and a capital raise, is targeted for 2027, subject to regulatory approvals and market conditions.
The company said the transaction would provide shareholders with exposure to a larger global polyolefins producer with a broader geographic footprint.
Source: Khaleej Times