Borouge Q3 net profit falls 63% to $109 million on lower prices
Sales volumes rose 22% year-on-year to 1.07 million tonnes as production recovered from feedstock constraints.
Borouge reported net profit of $109 million for the third quarter of 2026, down from $294.5 million in the same period a year earlier, according to a company disclosure on 30 October 2026. Revenue for the quarter reached $1.4 billion, up 3 percent from the previous quarter, with sales volumes rising 22 percent year-on-year to 1.07 million tonnes from 870,000 tonnes in the second quarter. Adjusted earnings before interest, taxes, depreciation and amortisation came in at $279 million.
Production and utilisation rates climb#
Production increased to 950,000 tonnes in the third quarter from 720,000 tonnes in the prior quarter, Borouge stated. Average plant utilisation rose from 60 percent in Q2 to 76 percent in Q3, before reaching around 90 percent in October. Improved ethane supply enabled the company to restart additional production capacity, supporting the recovery, according to the disclosure. External factors limited production during the quarter, though the company's facilities maintained technical availability, Borouge stated. Sales volumes of 1.07 million tonnes were supported partly by increased exports to Asian markets.
Pricing and cost pressures#
Average realised selling prices increased 22 percent year-on-year but fell from the prior quarter as benchmark prices for polyolefins globally retreated from earlier highs, the company reported. Product price premiums reached $301 per tonne for polyethylene and $156 per tonne for polypropylene, both exceeding the company's guidance, Borouge stated. Lower benchmark prices for polyolefins globally, combined with higher costs for propylene feedstock and increased freight and logistics expenses, reduced profitability during the quarter, according to the company. Alternative logistics routes enabled Borouge to deliver all available production to customers without using the Strait of Hormuz, the company stated.
Capacity expansion and fourth quarter outlook#
Borouge completed mechanical construction and commissioning of its PE7 facility, which adds 700,000 tonnes of polyethylene capacity, as part of the Borouge 4 growth project expected to increase annual polyethylene production capacity by 1.4 million tonnes, the company stated. The company's new cross-linked polyethylene plant recorded 20,000 tonnes of sales during Q3, adding up to 100,000 tonnes of annual production capacity. Demand for specialised polyolefin products remained resilient, with infrastructure and energy solutions accounting for 39 percent of sales, the company reported. Hazeem Sultan Al Suwaidi, chief executive officer, said on 30 October 2026 that the company began the fourth quarter with stronger feedstock availability, increased production and improved pricing, and expects a substantial improvement in profitability in the fourth quarter. The company cautioned that its outlook remains dependent on no material deterioration in regional operating conditions.
Sources2 sources across 2 domains
- khaleejtimes.comKhaleej TimesQ3 net profit $109 million, revenue $1.4 billion, sales volumes 1.07 million tonnes, production 950,000 tonnes, plant utilisation rates, pricing premiums, capacity expansion details, CEO statement
- forbesmiddleeast.comForbes Middle EastNet profit declined 63.1% year-on-year to $109 million from $294.5 million
Each source above carries the claim it supports. Links open the publisher's own page; their text is not reproduced here beyond what the claim requires, and their rights remain theirs.
Orient Brief is published by Arabian Media Network. Pieces are produced by the Policy Desk with AI-assisted synthesis of the cited sources and automated verification against the network's editorial policy. Every piece carries a desk rather than a reporter. Corrections are recorded on the piece and on the corrections page.
One question, the institutions that have published on it, and each position with the document and the date beneath it.