UAE’s petrochemical company Borouge announced today strong financial results for the first six months of 2022, driven by high demand and rising prices of petrochemical products.
In its first earnings as a listed company, Borouge reported a 16.4 percent increase in revenue to $3,460 million for H1 2022, versus the same period last year, driven by sales volume growth of 8.6 percent and average price per ton growth of 4.1 percent.
Adjusted EBITDA increased 1.7 percent to $1,512 million whilst net income increased 2.5 percent to $853 million.
Second quarter revenue grew by 17.6 percent whilst adjusted EBITDA grew by 35.5 percent compared to the prior quarter.
This was achieved despite higher underlying feedstock prices as Borouge was able to optimize feedstock arrangements to lower overall production costs per tonne compared with the previous quarter.
In H1 2022, Borouge saw overall production capacity growth of 6.9 percent year-on-year as the ramp-up of the new PP5 plant and the turnaround of Borouge 1 in Q1 (“B1”) was completed, helping drive an 8.6 percent year-on-year growth in overall sales volumes. June 2022 saw the strongest ever sales volumes achieved in a single month with an increasing proportion of products sold into the infrastructure solutions market.
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Chairman of Borouge commented: “These impressive results follow from the Company’s record-breaking IPO on the Abu Dhabi Securities Exchange in June of this year.
Borouge continued to achieve premia above benchmark prices during H1 2022, with June a particularly strong month, reflecting the Company’s differentiated product mix and ability to capture regional price opportunities. Premia for polypropylene in the first half of 2022 was $283/tonne versus $262/tonne in the same period last year, and for polyethylene was $368/tonne compared with $264/tonne in H1 2021.