Borouge lifts third-quarter revenue to Dh5.3 billion and expects its strongest quarter at the end of 2026
Borouge plc, the polyolefin solutions company listed on the Abu Dhabi Securities Exchange, reported revenue of Dh5.3 billion (about $1.4 billion) for the third quarter of 2026, up 3 per cent on the second quarter. Growth was driven by a sharp rise in sales volumes that offset the impact of lower average selling prices.
On the operating side, the company raised the average operating rate of its plants from 60 per cent in the second quarter to 76 per cent in the third as feedstock supplies improved, lifting production to 0.95 million tonnes from 0.72 million tonnes in the previous quarter. Sales volumes grew 22 per cent to 1.07 million tonnes from 0.87 million tonnes, after the company managed to ship all of its available output through alternative logistics routes that kept customers supplied despite regional disruption.
Adjusted earnings before interest, taxes, depreciation and amortisation came to Dh1.02 billion ($279 million), and net profit was Dh399 million ($109 million). Margins were hit by lower global benchmark polyolefin prices in north-east Asian markets, along with persistently high freight and logistics costs and higher prices for propylene feedstock.
The signs look better going into the final quarter. The operating rate rose to 90 per cent in October and global benchmark prices climbed compared with the third-quarter average, leading the company to forecast that the fourth quarter will be its strongest of 2026. Chief executive Hazeem Sultan Al Suwaidi said Borouge ended the third quarter with strong momentum and starts the final quarter with much better feedstock supply, higher production volumes and improving prices.
Al Majlis Analysis: The most important number in Borouge's results is not revenue but the operating rate. The jump from 60 to 76 per cent, and then to 90 per cent in October, means the company has come through the hardest phase of supply disruption and that its assets stayed ready for a quick return to full capacity. Its ability to ship all of its output through alternative routes is also a practical test of how resilient UAE supply chains are under pressure. Global price pressure and freight costs have not gone away, however, so any profit improvement in the fourth quarter will depend more on rising volumes than on prices. For investors on the Abu Dhabi market, the company's outlook is a positive signal for the petrochemicals sector as the year draws to a close.