First-half revenue at Borouge (Abu Dhabi, United Arab Emirates; www.borouge.com) jumped 16.4% versus the year-earlier period to USD 3.46 bn (EUR 3.4 bn), driven by volume growth and pricing strength from strong economic activity in its core markets in the Asia-Pacific and Middle East.

Adjusted EBITDA edged 1.7% higher to USD 1.51 bn while net income of USD 853 mn rose 2.5%, according to the company, which is a joint venture between the Abu Dhabi National Oil Company (Adnoc, Abu Dhabi; www.adnoc.ae) and Austrian polyolefins producer Borealis (Vienna; www.borealisgroup.com).

Production capacity expanded 6.9% as the ramp-up of the new 480,000 t/y PP5 plant in Ruwais, Abu Dhabi (see Plasteurope.com of 01.03.2022) and the turnaround of Borouge 1 were completed, supporting an 8.6% year-on-year growth in sales volumes.

Prices were above benchmark levels during H1, with June a particularly strong month. The company said the premium for polypropylene increased to USD 283/t versus USD 262/t in the same period last year, and for polyethylene, it rose to USD 368/t compared with USD 264/t.

Commenting on the pricing outlook, Borouge noted that while underlying benchmark prices for PE and PP have softened at the start of Q3, they remain higher compared to previous years and are forecast to strengthen into the year end. Economic activity in Asia-Pacific and the Middle East remains strong, it said.

Borouge said an unplanned shutdown of its LDPE unit in Q2 would likely continue, and as a countermeasure it was able to redirect more ethane to the olefin conversion unit for propylene production.

Based on the H1 performance and current market conditions, Borouge reiterated its commitment to pay shareholders dividends of USD 975 mn for FY 2022 and at least USD 1.3 bn for FY 2023. The company listed on the Abu Dhabi Securities Exchange in early June, raising USD 2 bn in the market’s largest IPO (see Plasteurope.com of 01.06.2022).