ADNOC entity Borouge records $1.14b operating profit for 9M-2023

ADNOC entity Borouge records $1.14b operating profit for 9M-2023

Dubai: The ADNOC joint venture Borouge recorded operating profits of $1.14 billion for the nine months ended September, down 32 per cent from a year ago as average selling prices remained under pressure.

Net profit for these nine months came to $713 million, down 39 per cent. Revenue for the period was $4.29 billion against $5.1 billion for the year ago.

But the ADX-listed company, which is into petrochemicals, did see sales volumes gain 16 per cent during the July to September period, and doing much to ‘counteract’ the squeeze on its selling prices.

“Sales volumes from energy and infrastructure solutions represent 38 per cent of overall sales in the third quarter,” said the company in a statement. “This is part of Borouge’s strategy to focus on durable products for industrial applications.” (Borouge is a joint venture between ADNOC and Borealis, one of the biggest names in polyolefin solutions.)

Asia-Pacific remains its largest market, with 62 per cent of total volumes, followed by the Middle East and Africa with 30 per cent.

On ADX, the stock - which is at Dh2.5 - has been mostly flat in the year-to-date.

1.4 million tonnes a year The expected polyethylene production capacity increase within the Borouge 4 project The