Borouge Plc · ADX:BOROUGE
Borouge — Q1 2024 Earnings Presentation
14 slides from Borouge's earnings presentation, Jul 31, 2024
Slide 1: Borouge Q1 2024 Results Presentation
Borouge Classification: Internal BOROUGE Q1 2023 RESULTS PRESENTATION 31 July 2024
Slide 2: Disclaimer
Borouge Classification: Internal DISCLAIMER This presentation has been prepared by Borouge PLC and its subsidiaries (the “Company”) based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informatio
Slide 3: Agenda and Presenters
Borouge Classification: Internal AGENDA AND PRESENTERS Hazeem Sultan Al Suwaidi Chief Executive Officer Q1 2024 Results 01 Market Update Rainer Hoefling 02 Operational Highlights Chief Marketing Officer 03 Financial Highlights Dr. Hasan Karam 04 Outlook Chief Operating Officer 05 Concluding Remarks
Slide 4: Q1 2024 Results
Borouge Classification: Internal Q1 2024 RESULTS 4 Q1 ‘24 Earnings Presentation
Slide 5: Q1 2024 Results Highlights
Borouge Classification: Internal Q1 2024 RESULTS HIGHLIGHTS Strong performance supported by improved pricing, healthy sales volumes and focused cost discipline Adj. Operating Net Profit Sales Volumes Adj. EBITDA Cashflow $273 million 1,135 kt $567 million $552 million Year-on-Year Year-on-Year Year-
Slide 6: Delivering the Highest EBITDA Margins in the Industry
Borouge Classification: Internal DELIVERING THE HIGHEST EBITDA MARGINS IN THE INDUSTRY Borouge business model drives substantial and sustained EBITDA margin profile 800 50% 750 $ millions Percentage (%) Strategic focus on high value-add / 44% 45% 700 Pricing Premia differentiated products commanding
Slide 7: Polyolefins Prices & Premia
Borouge Classification: Internal POLYOLEFINS PRICES & PREMIA Product Prices and Premia Evolution Commentary 1,202 1,077 1,122 1,082 ▪ Market prices improved in Q1 due to limited 938 945 991 1,051 890 901 880 889 supply during turnaround season, higher oil / feedstock prices and elevated freight cost
Slide 8: Operational and Commercial Performance
Borouge Classification: Internal OPERATIONAL AND COMMERCIAL PERFORMANCE Sales Volumes(1) Commentary 688 751 688 573 Polyethylene ▪ Strong total sales volumes at 1,135 kt in Q1 +20% -8% (kt) mitigating planned feedstock-related turnaround successfully completed as scheduled Q1 23 Q1 24 Q4 '23 Q1 24 ▪
Slide 9: Revenue & Profitability
Borouge Classification: Internal REVENUE & PROFITABILITY Key Metrics(1) Commentary (3) Polyethelene Polypropylene 69 19 9 9 Ethylene & others 620 Revenue 555 483 483 ($m) -6% -13% 758 810 858 810 ▪ Strong Q1 performance supported by healthy sales volumes and improved average selling Q1 23 Q1 24 Q4 '
Slide 10: Costs
Borouge Classification: Internal COSTS Key Metrics(1) Commentary % of Revenue 57% 46% 50% 46% 781 754 594 594 Cost of Sales (excl D&A) -24% -21% ($m) ▪ Overall cost base down 20% YoY and 18% QoQ Q1 23 Q1 24 Q4 '23 Q1 24 respectively driven by lower COGS and selling and distribution expenses % of Rev
Slide 11: Capex & Free Cash Flow
Borouge Classification: Internal CAPEX & FREE CASH FLOW Key Metrics(1) Commentary 82 74 Capital Expenditure -82% -80% ▪ CAPEX was down 80% QoQ due to seasonality ($m) 15 15 effect and no turnaround related expense during the quarter Q1 23 Q1 24 Q4 '23 Q1 24 ▪ Q1 adjusted operating free cashflow of $
Slide 12: Outlook / Guidance
Borouge Classification: Internal OUTLOOK / GUIDANCE ▪ Polyolefins market remains challenging in 2024 against the backdrop of macroeconomic and increased geopolitical Market uncertainty. ▪ Market analysts anticipate a soft pricing environment to continue in 2024 ▪ Expectation for pricing in Q2 2024 t
Slide 13: Concluding Remarks
Borouge Classification: Internal CONCLUDING REMARKS High operating and asset Strong sales volumes Continue to drive Material growth in capacity $1.3 billion dividend reliability rates with focus on value-add efficiencies, with overall to come from Borouge 4 guidance for FY 2024 supported strong segm
Slide 14: Thank You
Borouge Classification: Internal THANK YOU www.borouge.com/en/investor-relations ir@borouge.com