Borouge Reports $1.24 Billion Net Profit in FY2024, Up 24% Year-on-Year on Record Production and Sales

Borouge Plc, a leading petrochemicals company specializing in innovative polyolefin solutions, announced a net profit of $1.24 billion for the fiscal year 2024, marking a 24% increase from the previous year. This growth was driven by record production and sales volumes, surpassing market expectations.

The company reported an industry-leading EBITDA margin of 41%, with EBITDA rising 14% year-on-year to $2.48 billion. Revenue grew by 4% to $6 billion, underpinned by strong operational performance and strategic positioning in high-growth markets across Asia, the Middle East, and Africa.

Operational Highlights Borouge achieved record production levels of 5.2 million tonnes and sales volumes of 5.3 million tonnes, reflecting robust demand for its differentiated products. Polyethylene utilization rates reached 110%, while polypropylene utilization stood at 98%.

In 2024, Borouge launched nine new products targeting the infrastructure and advanced packaging sectors, reinforcing its commitment to innovation and sustainability. These products address critical global challenges such as climate change, food waste, and access to clean water.

Financial Strength and Shareholder Returns The company’s strong financial performance supports its intention to maintain a $1.3 billion dividend for FY2025. Borouge has distributed $2.9 billion in dividends since its IPO in 2022, underscoring its commitment to delivering robust shareholder returns. The net debt-to-EBITDA ratio stood at 1.1x as of 31 December 2024, supported by a $200 million debt repayment during the year.

Q4 2024 Performance For the fourth quarter of 2024, Borouge reported a net profit of $331 million, up 15% year-on-year and 1% quarter-on-quarter. Revenue reached $1.62 billion, reflecting an 8% increase from Q4 2023. Adjusted EBITDA rose 8% year-on-year to $650 million, with a healthy EBITDA margin of 40%. Cash conversion was strong at 88%, resulting in an adjusted operating free cash flow of $572 million, a 9% year-on-year increase.

Strategic Expansion and Innovation Borouge’s Borouge 4 expansion project is on track to increase production capacity by 28%, positioning the company as the world’s largest single-site polyolefin complex. The project is expected to generate $1.5 to $1.9 billion in annual revenue upon completion.

Additionally, Borouge is upgrading its second ethane cracker unit (EU2) to add 230,000 tonnes of capacity by 2028, projected to contribute $220 to $250 million in annual revenue. The company is also exploring opportunities in China with a feasibility study for a specialty polyolefins complex in Fuzhou.

Digital Transformation and Sustainability Borouge’s digital and AI transformation initiatives generated $573 million in value in 2024, surpassing its $550 million target. The company partnered with the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) to integrate advanced AI technologies into its operations.

Borouge achieved significant sustainability milestones, reducing greenhouse gas emissions by over 500 KtCO2eq annually since 2018. The company aims to reduce emissions intensity by 25% by 2030 and achieve net zero emissions by 2045. Borouge was included in the S&P Global LargeMidCap ESG index for the first time in 2024 and ranked in the top 15th percentile among over 500 global chemical companies.

Outlook Borouge remains focused on differentiation and achieving product price premia, with management guidance at $200 per tonne for polyethylene and $140 per tonne for polypropylene. The company expects average selling prices to improve in Q1 2025 and plans to maintain a $1.3 billion dividend for the year, supported by its strong financial performance.

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