Borouge’s sales volumes rose 22% from the previous quarter to 1.07 million tonnes in the third quarter of 2026, the Abu Dhabi-listed petrochemicals producer said on Thursday, as improved ethane supply allowed it to restart more production capacity.
Net profit for the quarter was $109 million. Revenue rose 3% from the second quarter to $1.4 billion, and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $279 million, the company said in a statement.
Margins were hurt by lower average selling prices, which reflected a decline in global polyolefin benchmark prices, and by continued high freight, logistics and propylene feedstock costs.
Average realized selling prices were 22% higher than a year earlier but fell from the second quarter, when prices spiked.
Production recovery
Average utilization rose to 76% in the third quarter from 60% in the second quarter, and climbed above 90% in October.
Borouge produced 0.95 million tonnes in the quarter, up from 0.72 million tonnes in the previous three months. It said it shipped all available production through alternative logistics routes, without dependence on the Strait of Hormuz.
The company expects the fourth quarter to be the strongest of 2026, with a substantial improvement in EBITDA from higher production and better pricing, subject to no material deterioration in the regional operating environment.
“We closed the quarter with strong momentum and enter Q4 with significantly improved feedstock supply, higher production volumes and improving pricing,” Hazeem Sultan Al Suwaidi, chief executive officer of Borouge, said.
Growth projects and dividend
Borouge said its PE7 plant at the Borouge 4 project had reached mechanical completion and commissioning, adding 700,000 tonnes of polyethylene capacity. Borouge 4 is set to raise polyethylene capacity by 1.4 million tonnes a year in total.
A new cross-linked polyethylene plant recorded 20,000 tonnes of sales in the quarter. The plant adds up to 100,000 tonnes of annual capacity.
The company paid an interim dividend of 8.1 fils per share in September and reaffirmed its annual dividend intention of 16.2 fils per share.
Borouge said the proposed tender offer to exchange Borouge Plc shares for shares in Borouge Group International AG, followed by a listing on the Abu Dhabi Securities Exchange and a capital raise, is targeted for 2027, subject to market conditions and regulatory approvals.
Borouge International, formed in March 2026, has 13.6 million tonnes of annual production capacity across 30 sites. It recorded sales growth of 11% and an EBITDA margin of 18.4% in the third quarter, the statement said.
