Page 4 - DMEA Week 30 2022

DMEA COMMENTARY DMEA

Borouge announces

strong results ahead

of expansion work

The speciality chemicals JV has posted bumper results just over a month since
it listed on the local stock market as it works to expand production capacity.

MIDDLE EAST THE Borouge joint venture (JV) between Abu performance during Q2.
Dhabi National Oil Co. (ADNOC) and Austria’s The company noted that these results had
Borealis this week announced its first half results been “achieved despite higher underlying feed-
WHAT: ahead of beginning work on a new polyolefin stock prices as Borouge was able to optimise
The company has seen (PO) plant. feedstock arrangements to lower overall produc-
performance soar on In its first results announcement since the tion costs per tonne compared with the previous
the back of improved company’s initial public offering (IPO) on the quarter.
economies of scale as it Abu Dhabi Securities Exchange (ADX) in June, Production capacity grew by 6.9% year-over-
ramps up output. Borouge reported a 16.4% increase in first half year as the new its fifth polypropylene unit (PP5)
revenue growth, year-over-year. ramped up operations after its launch in Febru-
WHY: ary and the company reported its highest ever
It has reiterated its Borouge boon sales volumes in June.
intention to pay nearly The results support the clamour for the compa- “Based on the robust performance of its
$2.3bn in dividends ny’s stock, which saw the IPO 42 times oversub- operations and current market conditions”, the
for the 2022 and 2023 scribed across the domestic and international company reiterated its IPO commitment to pay
financial years combined. tranches. $975mn in dividends to shareholders for the
Revenues rose to $3.46bn on the back of an 2022 financial year and no less than $1.3bn for
WHAT NEXT: 8.6% increase in sales volume and a 4.1% jump in 2023.
Work is set to begin on its the price achieved per tonne of output. Borouge CEO Hazeem Sultan Al Suwaidi
new Borouge 4 polyolefin Adjusted earnings before interest, taxes, said: “Coming shortly after our landmark IPO,
plant which will make depreciation, and amortisation (EBITDA) was these robust financial and operational results
the JV the world’s largest up by 1.7% to $1.52bn with net income rising underpin our unique product offering and spe-
single-site polyolefin by 2.5% to $853mn, driven by a major uptick in cialty solutions and are testament to the quality
complex.

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