Q1 2026 Borouge Plc Earnings Call Transcript
Key Points
- Borouge PLC (ADX:BOROUGE) achieved a strong production result of 1.2 million tons with asset utilization close to nameplate capacity.
- The company delivered a robust EBITDA margin of 29% and a net profit of $156 million despite challenging conditions.
- Borouge successfully rerouted 61% of March production to alternative logistics channels, demonstrating operational flexibility.
- The company maintained strong cash flow and profitability with adjusted EBITDA of $343 million and operating free cash flow of $295 million.
- Borouge's strategic focus on higher value-added segments, such as Infrastructure Solutions, remains strong, representing 39% of total sales volumes.
- Logistics disruptions due to regional events led to a 13% year-on-year decline in sales volumes.
- Revenue decreased by 30% quarter-on-quarter and 17% year-on-year, reflecting lower average pricing and reduced sales volumes.
- Selling and distribution expenses increased by 39% year-on-year due to higher shipping and freight costs.
- Utilization is expected to be lower in Q2 following an incident at Ruwais, which caused damage to production equipment.
- The company faces ongoing challenges with logistics costs and the need to develop alternative shipping routes due to the closure of the Strait of Hormuz.
Good afternoon, and thank you for joining us today for Borouge's Q1 2026 results call. My name is Chris Bucknall, Vice President of Investor Relations. I'm pleased to be joined today by our senior management team, Chief Executive Officer Hazeem Sultan Al Suwaidi, Chief Operating Officer Dr. Hasan Karam, Chief Marketing Officer Roland Janssen, and Chief Financial Officer Jan-Martin Nufer. Today's call will begin with a presentation from the management team covering our Q1 performance, the operating environment, and our outlook. We'll then open the line for questions. A copy of today's presentation is available on the investor relations section of our website.
With that, I'll hand over to our CEO, Hazeem.
Thank you all for joining us today. Q1 was delivered in a very challenging environment, and our performance underscores the resilience of the business and the strength of our execution. Safety is always our first priority,
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