UAE’s Borouge says ‘significant’ production sold in March via alternative routes

[Editor's Note: Follow Khaleej Times live blog amid US-Israel-Iran war for the latest regional developments.]

Borouge on Monday said it was able to sell a significant proportion of its production in March through alternative routes despite the ongoing regional conflict.

The Abu Dhabi-based petrochemical giant assured that it has significant available liquidity to deal with short-term challenges.

The company’s facility was hit by falling shrapnel and debris after the UAE armed forces successfully intercepted the threat.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

“In the first quarter of 2026, Borouge achieved high utilisation rates and was able to sell a significant proportion of its production during the month of March via alternative routes, with additional inventories placed in storage ahead of shipment,” said Hazeem Sultan Al Suwaidi, CEO of Borouge.

The statement comes as the company reported an incident of debris falling on its facility on Sunday.

Borouge on Monday confirmed that an incident occurred at its production facilities located in the Ruwais Industrial Area on April 5.

Following a successful interception by air defence, falling debris resulted in damage to assets.

“There were no injuries and the resulting fires were all brought under control. Production activity in affected areas has been suspended following the incident whilst damage assessment and repairs are carried out,” the Abu Dhabi-based petrochemical company said. 

Financial resilience

Al Suwaidi assured that the company has strong cash flow generation, abundant liquidity, and significant financial resilience to deal with short-term challenges.

“A global shortage of polyolefins is driving a strong recovery in prices in March which has continued in April. Borouge retains significant financial resilience to navigate short term operational disruption due to its strong cash generation and significant available liquidity,” Al Suwaidi said in a statement posted on the Abu Dhabi Securities Exchange, where it is listed.

In February, Borouge announced exceptional financial results for 2025, with a net profit of $1.1 billion. Its fourth quarter 2025 net profit increased 12 per cent quarter on quarter to $330 million, driven by record quarterly production, sales volumes, and utilisation rates, supporting the company’s industry-leading margin performance.

Borouge delivered full-year production of 5.1 million tonnes, above nameplate capacity, and executed the largest turnaround in the company’s history in Q2.

A continued strategic focus on high-value products, including infrastructure solutions, combined with regional sales optimisation, supported strong pricing premia. Despite a decline in benchmark prices, Borouge demonstrated strong commercial resilience, achieving price premia of $224 per tonne for Polyethylene (PE) and $134 per tonne for Polypropylene (PP) in 2025.

In January, Borouge announced the completion of a proof of concept for AI-powered autonomous operations at its Ruwais facility, delivered in collaboration with Honeywell.

Borouge and Borealis, in collaboration with Catalytic Finance Foundation, Pelita Mekar Semesta (PMS), and Reciki Solusi Indonesia, joined forces to establish Indonesia’s first fully integrated circular waste management ecosystem.