Borouge profit almost halves on logistics disruption
Abu Dhabi-listed petrochemical company Borouge said net profit nearly halved in the first quarter of 2026, as logistics challenges hit revenues in March.
The bottom line declined to $156 million in the January-March quarter, down 45 percent from a year earlier.
Revenue dropped 17 percent to $1.2 billion, despite the company’s use of alternative distribution routes in response to the blockade of the Strait of Hormuz.
Higher logistics and freight costs were absorbed into its pricing strategy, the company said in a filing to the Abu Dhabi Securities Exchange on Thursday.
First-quarter production reached 98 percent of capacity, at 1.21 million tonnes. Polyolefin prices rose 62 percent in March, driven by a global supply shortage and are expected to have stayed high in April, supporting the full-year outlook.
In April, Borouge’s production facilities at the Ruwais Industrial Area were damaged during the conflict.
Following initial repairs to some lines and a phased restart of the plant, most production units are available and utilisation is ramping up, the statement said.
Moreover, inventory from unsold production in March is being sold into a higher-price environment in the second quarter.
Borouge’s shares were trading 0.8 percent lower at AED2.51 on Thursday and are down 5 percent since the start of the year.
Borouge Group International (BGI) owns 90 percent of Borouge, according to ADX data.
BGI is a $60 billion venture formed through the combination of Borouge, Europe’s Borealis and Canada’s Nova Chemicals.
Further reading:
- Adnoc and OMV seal deal for $60bn chemicals JV
- OMV to profit from Borouge-Borealis merger with Adnoc
- Proposed Adnoc-OMV entity targets Mubadala unit
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