Strong 15% growth in sales volumes for the year resulting in 8% revenue growth
Borouge, a leading UAE petrochemical company that provides innovative and differentiated polyolefin solutions, recently announced its financial results for the twelve-month and three-month periods ended 31 December 2022, with strong year-on-year growth in sales volumes driving healthy revenue growth.
Highlights for the twelve months to 31 December 2022: Borouge reported revenue of US$6.7bn, increasing by 8.2% versus 2021. The increase in revenue over the twelve-month period was driven by a 14.9% increase in total polyolefin sales volumes. Net profit for the year was US$1.4bn, in line with market expectations and holding up well, despite an overall challenging market environment.
Building on cost optimisation activities in 2022, Borouge has announced its high-impact value enhancement programme, anchored in cost efficiency and revenue optimisation initiatives. The programme focuses on driving efficiencies within variable costs, fixed costs, and revenue enhancement opportunities, and is expected to deliver a US$ 400mn EBITDA impact in 2023.
“As we look ahead to 2023 and beyond, we will continue to execute on our commitment to organic growth, as well as explore new opportunities for expansion in the UAE and internationally, where they complement our long-term growth strategy and reinforce our position as a world-leading polyolefins producer,” stated Hazeem Sultan Al Suwaidi, Chief Executive Officer, Borouge.
Activity in Borouge’s core Asia Pacific and Middle East markets remains stronger than in developed markets, with economic growth rates ahead of developed economies. Management therefore expects stable polyolefin demand growth in its core territories.