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Borouge Q2 Earnings Beat Market Estimates Despite Major Plant Turnaround

Prime Highlights

  • Borouge reports $193 million Q2 2025 net profit, well above market expectations.
  • Turnaround of Borouge 3 plant finished 8 days ahead of schedule, with 15% downtime savings achieved.

Key Facts

  • Adjusted EBITDA at $440 million with robust margin of 34%.
  • H1 2025 dividend payment of 8.1 fils/share declared, with full-year target of 16.2 fils/share reaffirmed.

Key Background

Borouge Q2 profit was higher than expected at $193 million, despite a major planned shutdown of its Borouge 3 plant. Quarterly revenue fell to $1.31 billion, from $1.50 billion year-over-year, due to the temporary shutdown of the plant. But operational excellence and advance turnaround completion eight days earlier than planned minimized disruption and maintained production levels.

Glowing from the shutdown, Borouge reported sales of 1.1 million tonnes of product in Q2 with strategic release of inventory of about 140,000 tonnes. The company reported price resiliency in value segment. Premiums of $249 per tonne on average for polyethylene and $141 per tonne on average for polypropylene both surpassed internal targets. Premiums underpinned an adjusted EBITDA of $440 million with a strong EBITDA margin of 34%.

Borouge reported 2025 first-half revenue of $2.72 billion and adjusted EBITDA of $1.0 billion. This shows marginal year-on-year topline and profitability erosion spurred primarily by market softness and turnaround. Borouge had evidence of cost control and management as well as product mix control, where sophisticated packaging and infrastructure contributed 41% to total sales.

The company reaffirmed value return to shareholders. It announced an interim dividend of 8.1 fils a share for H1 2025 and reaffirmed full-year guidance of 16.2 fils unchanged. This stable payout demonstrates good free cash flow and well-capitalized balance sheet, with net debt-to-EBITDA at 1.0×. Borouge also spent $130 million on capital expenditure and completed a share buyback of 125 million shares as part of its strategic allocation of capital.

Borouge’s announcement of Q2 results is a strong signal of operating responsiveness, sound price strategies, and continued shareholder focus amidst industry-wide failures on all fronts.

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