Borouge Plc Achieves Record-Breaking Financial Performance in 2024
Borouge Plc has delivered an remarkable financial performance in 2024, with its net profit surging by 24% annually to reach 4.55 billion dirhams ($1.24 billion). This remarkable achievement was driven by record production adn sales volumes, solidifying the company’s position as a leader in the global petrochemical sector [1].
The company’s success is attributed to its high production rates,robust international marketing network,and adoption of cutting-edge technology. These factors have enabled Borouge to innovate and meet the growing demands of its customers across diverse markets.
Key Financial Highlights
Table of Contents
Borouge’s revenue for 2024 increased by 4% year-on-year to 22.13 billion dirhams ($6 billion),while its profits before interest,taxes,depreciation,and amortization (EBITDA) rose by 14% to 9.10 billion dirhams ($2.48 billion).The company achieved an impressive EBITDA margin of 41%, outperforming many of its international competitors [2].
Operational Excellence
Borouge recorded a record production of 5.2 million tons in 2024,with utilization rates reaching 110% for polyethylene and 98% for polypropylene. Sales volumes also hit an all-time high of 5.3 million tons, supported by the company’s strategic presence in high-growth markets across Asia, the middle East, and Africa. Its extensive international network, comprising 14 sales and marketing offices, has been instrumental in driving this growth [3].
Leadership Insights
Hazim Sultan Al-Suwaidi, CEO of Borouge, highlighted the company’s resilience and strategic focus. “The company has achieved meaningful growth in returns in 2024 while maintaining a strong profit rate despite the challenges in the global petrochemical sector,” he said. Al-Suwaidi emphasized that the ongoing Borouge 4 expansion project will increase production capacity by approximately one-third, further enhancing the company’s innovative capabilities and sales growth in key markets.
Borouge is also investing heavily in digital conversion and artificial intelligence. “These initiatives are enhancing productivity and reshaping our operational processes for the future,” Al-Suwaidi added.
Future Outlook
Looking ahead,Borouge plans to maintain dividends of 4.8 billion dirhams ($1.3 billion) for the fiscal year 2025, reflecting a yield of 6.3%. This commitment underscores the company’s confidence in its financial stability and growth prospects.
| Key Metrics | 2024 Performance |
|————————–|—————————|
| Net profit | 4.55 billion dirhams ($1.24 billion) |
| Revenue | 22.13 billion dirhams ($6 billion) |
| EBITDA | 9.10 billion dirhams ($2.48 billion) |
| Production Volume | 5.2 million tons |
| Sales Volume | 5.3 million tons |
Borouge’s stellar performance in 2024 is a testament to its strategic vision, operational excellence, and commitment to innovation. As the company continues to expand and embrace advanced technologies, it is indeed well-positioned to maintain its leadership in the global petrochemical industry.
Borouge Plc’s Record-Breaking 2024 Performance: insights from a Petrochemical Industry Expert
Borouge Plc has solidified it’s position as a global leader in the petrochemical industry with its outstanding financial performance in 2024. The company reported a net profit of 4.55 billion dirhams ($1.24 billion), marking a 24% annual increase. This success is attributed to record production and sales volumes, as well as its adoption of advanced technologies.To delve deeper into these achievements, we spoke with Dr. Ahmed El-Sayed, a renowned expert in the petrochemical sector, who shares his insights on Borouge’s strategies, operational excellence, and future outlook.
Borouge’s Financial Milestones in 2024
Senior Editor: Dr. el-Sayed, Borouge’s financial results for 2024 are impressive. Can you elaborate on what drove this remarkable performance?
Dr. Ahmed El-Sayed: Absolutely. Borouge’s 2024 results are a reflection of its strategic vision and operational efficiency. The company achieved a 4% year-on-year increase in revenue, reaching 22.13 billion dirhams ($6 billion), while its EBITDA surged by 14% to 9.10 billion dirhams ($2.48 billion). This growth was fueled by high production rates, which hit 5.2 million tons, and record sales volumes of 5.3 million tons. Additionally, Borouge’s robust international marketing network played a pivotal role in expanding its reach across high-growth markets in Asia, the Middle East, and Africa.
Operational excellence and Innovation
Senior Editor: Borouge has consistently emphasized operational excellence. How has the company maintained such high production and sales volumes?
Dr. Ahmed El-Sayed: Borouge’s operational success can be attributed to several factors. First, the company operates at utilization rates of 110% for polyethylene and 98% for polypropylene, which are exceptionally high by industry standards. Second, its focus on innovation and technology adoption has allowed it to optimize processes and reduce costs. As an example, Borouge’s investment in digital change and artificial intelligence has enhanced productivity and reshaped its operational workflows. These initiatives have not only improved efficiency but also positioned the company as a leader in adopting Industry 4.0 technologies.
Leadership and strategic Vision
Senior Editor: Borouge’s CEO, Hazim Sultan Al-Suwaidi, has highlighted the company’s resilience and strategic focus. What are your thoughts on his leadership and the company’s future plans?
Dr. Ahmed El-Sayed: Mr. Al-Suwaidi’s leadership has been instrumental in guiding Borouge through a challenging global petrochemical landscape. His strategic focus on maintaining profitability while investing in growth initiatives, like the Borouge 4 expansion project, demonstrates a forward-thinking approach.This project is expected to increase production capacity by approximately one-third, further strengthening the company’s market position. Additionally, Borouge’s commitment to sustainability and innovation, as seen in its digital transformation efforts, underscores its readiness to meet future industry demands.
Future Outlook and Dividend Commitment
Senior Editor: Looking ahead, Borouge plans to maintain dividends of 4.8 billion dirhams ($1.3 billion) for 2025. What dose this tell us about the company’s confidence in its future?
Dr. Ahmed El-Sayed: Borouge’s commitment to maintaining substantial dividends reflects its strong confidence in its financial stability and growth prospects. the projected yield of 6.3% is a clear signal to investors that the company is well-positioned to deliver consistent returns. This confidence is backed by its solid financial performance, strategic investments, and ability to adapt to market dynamics. As Borouge continues to expand and embrace advanced technologies, it is indeed poised to sustain its leadership in the global petrochemical industry.
Conclusion
Borouge Plc’s record-breaking performance in 2024 is a testament to its strategic vision, operational excellence, and commitment to innovation. With robust financial results, high production and sales volumes, and a clear focus on future growth, the company is well-positioned to maintain its leadership in the global petrochemical sector. As Dr. Ahmed El-Sayed highlighted, Borouge’s resilience, strategic investments, and adoption of advanced technologies are key drivers of its continued success.
