Borouge Sees Strong Growth Amid Regional Headwinds
Abu Dhabi’s Borouge has demonstrated significant operational resilience, reporting a 22% surge in sales volumes during the third quarter of 2026. Despite facing challenges like fluctuating global polyolefin prices and elevated logistics costs, the company generated $1.4 billion in revenue, with a quarterly profit of $109 million. A key factor in this performance was a sharp recovery in plant utilization, which climbed from 60% in the second quarter to 76% in the third, supported by improved ethane supply. Even as regional tensions necessitated the use of alternative shipping routes to bypass the Strait of Hormuz, the company successfully maintained its delivery commitments to international markets.
Looking ahead, Borouge leadership is optimistic about a strong finish to the year, projecting that the fourth quarter will be its most productive of 2026. This confidence is fueled by rising production levels, which reached 950,000 tonnes in the third quarter, and the continued progress of the Borouge 4 expansion project. With new capacity coming online and a strategic focus on high-demand infrastructure projects, the company remains committed to its dividend policy, offering a 7.2% yield. Furthermore, preparations for the 2027 listing of Borouge International are underway, aiming to solidify its position as a global leader in the polyolefins industry through significant operational synergies.