Borouge, a leading provider of innovative plastics solutions, has announced its Q1-2023 financial results, reporting revenues of $1.38 billion, up from $1.26 billion in the same period last year. The company attributes its growth to improved pricing and cost efficiency measures.
Borouge, a joint venture between Abu Dhabi National Oil Company (ADNOC) and Austria-based Borealis, is one of the largest producers of polyolefin plastics in the world. Its products are used in a wide range of industries, including construction, packaging, and automotive.
Commenting on the results, Ahmed Omar Abdulla, CEO of Borouge, said: “We are pleased to report a solid financial performance in the first quarter of 2023, driven by a combination of factors, including improved pricing and our ongoing efforts to enhance operational efficiency and productivity. These results demonstrate the resilience of our business and our ability to adapt to changing market conditions.”
Abdulla added: “Despite the ongoing challenges posed by the COVID-19 pandemic, we remain committed to delivering high-quality products and services to our customers and supporting the growth of the global plastics industry.”
Borouge’s Q1-2023 revenues were supported by strong demand for its products in key markets, including China, India, and Southeast Asia. The company’s sales volumes of polyethylene and polypropylene increased by 11% and 16%, respectively, compared to the same period last year. The company witnessed an increase in specialty products sales, with more than 80% of volumes exported to markets outside the region. Borouge’s export shipment increased by 16% year-on-year, as a result of successful expansion into new markets such as Latin America and Africa.
The company’s cost efficiency measures also contributed to its improved financial performance. In recent years, Borouge has implemented a range of initiatives aimed at reducing costs and improving operational efficiency, including the adoption of advanced technologies and the optimization of its supply chain.
Borouge’s parent company, ADNOC, has been actively pursuing a strategy of diversifying its portfolio and expanding its downstream operations. The company has invested heavily in its petrochemicals and plastics business in recent years, with the goal of becoming a leading player in the global plastics industry.
In line with this strategy, Borouge has been expanding its operations and increasing its production capacity. In 2022, the company completed the construction of a new polypropylene plant in Abu Dhabi, which is expected to increase its production capacity by 25%.
Looking ahead, Borouge is optimistic about its growth prospects, despite the challenges posed by the COVID-19 pandemic and the ongoing volatility in the global economy. The company plans to continue its focus on innovation, sustainability, and operational excellence, with the aim of delivering long-term value to its stakeholders. Borouge also plans to strengthen its partnerships with governments and industry players in the UAE, Saudi Arabia, and across the region in order to drive further growth opportunities. Additionally, Borouge is committed to enriching the lives of people living in our communities through investments in education, health care, and other social initiatives. By staying true to these core values, Borouge is confident that it can continue to build a successful future.
The company is also leveraging its technological capabilities and expertise to help clients stay ahead of the curve in an ever-changing landscape.
Abdulla said: “We are confident in our ability to navigate the challenges of the current environment and capitalize on the opportunities presented by the rapidly evolving plastics industry. We will continue to invest in our people, our technology, and our infrastructure to ensure that we remain a leader in the industry and a valued partner to our customers.”
In conclusion, Borouge’s Q1-2023 financial results demonstrate the company’s resilience and ability to adapt to changing market conditions. The company’s focus on innovation, sustainability, and operational excellence, combined with its strong customer relationships and expanding production capacity, position it well for long-term growth in the global plastics industry.
