Borouge Plc · ADX:BOROUGE
Borouge — Q1 2025 Earnings Presentation
33 slides from Borouge's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025 Results Presentation
Borouge Q1 2025 Results Presentation 30th April 2025
Slide 2: Disclaimer
Borouge Classification: Public 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 informationa
Slide 3: Agenda and Presenters
Agenda and Presenters Agenda Q1 2025 Results Highlights Market Update and Commercial Highlights Operational Highlights Financial Highlights Outlook Hazeem Sultan Roland Dr. Hasan Jan-Martin Al Suwaidi Janssen Karam Nufer Chief Executive Chief Marketing Chief Operating Chief Financial Concluding Rema
Slide 4: Q1 2025 Results Highlights
Q1 2025 Results Highlights Hazeem Sultan Al Suwaidi Chief Executive Officer
Slide 5: Q1 Net Profit +3% YoY Driven by Strong Sales Volume
Borouge Classification: Public Q1 25 NET PROFIT +3% YOY DRIVEN BY STRONG SALES VOLUME Premia for PE and PP above management guidance through product-mix and regional optimization Q1 Net Profit Q1 Sales Volumes Q1 Adj. EBITDA(1) Q1 Adj. Operating FCF (2) $281 million 1,252 kt $564 million $523 millio
Slide 6: Market Update and Commercial Highlights
Market Update and Commercial Highlights Roland Janssen Chief Marketing Officer
Slide 7: Polyolefins Prices & Premia
Borouge Classification: Public POLYOLEFINS PRICES & PREMIA Q1 25 premia for PE and PP strengthen above management guidance Commentary ▪ Borouge’s overall polyolefin selling prices in 1,122 1,059 1,079 1,051 1,025 1,050 Q1 improved QoQ despite limited 901 881 855 889 885 896 benchmark movement Benchm
Slide 8: Commercial Performance
Borouge Classification: Public COMMERCIAL PERFORMANCE Volume performance balanced against strategic product mix and margin discipline Commentary Year-on-Year Quarter-on-Quarter 823 Polyethylene ▪ Sales volume of 1,252 kt in Q1 25, up +10% 740 740 Sales Volume 688 YoY and -15% QoQ reflecting typical
Slide 9: Operational Highlights
Operational Highlights Dr. Hasan Karam Chief Operating Officer
Slide 10: Operational Highlights
Borouge Classification: Public OPERATIONAL HIGHLIGHTS High utilisation rates maintained in Q1 with record monthly production in March Commentary Year-on-Year Quarter-on-Quarter ▪ Continued strong operations with highest- ever monthly production achieved in March 113% ▪ Utilisation rates remained hig
Slide 11: Financial Highlights
Financial Highlights Jan-Martin Nufer Chief Financial Officer
Slide 12: Revenue & Profitability
Borouge Classification: Public REVENUE & PROFITABILITY Strong revenue and stable margins Commentary (3) Total Revenue ($M) 1,302 1,420 1,621 1,420 Ethylene & Others 13 9 14 675 14 Polypropylene Revenue Polyethylene 483 546 546 +9% -12% ▪ Q1 revenue increased 9% YoY to $1.42bn, ($m) 810 859 933 859 s
Slide 13: Costs
Borouge Classification: Public COSTS Stable cost base Commentary (3) (3) % of Revenue 46% 50% 52% 50% 837 712 712 Cost of Sales 594 (excl D&A) ($m) +20% -15% ▪ Cost of sales (excl. D&A) increased to $712m, but remained flat as a % of revenue (50%), Q1 24 Q1 25 Q4 24 Q1 25 reflecting cost discipline
Slide 14: Capex & Free Cash Flow
Borouge Classification: Public CAPEX & FREE CASH FLOW Strong cash conversion and prudent capital management Commentary 78 Capital ▪ Capex of $41m on Q1 25 vs. $78m for Q4 24, 41 41 consistent with planned investment in relation Expenditure to B3 turnaround scheduled for Q2 ($m) 15 +169% -48% ▪ Adj.
Slide 15: Outlook & Concluding Remarks
Outlook & Concluding Remarks Hazeem Sultan Al Suwaidi Chief Executive Officer
Slide 16: Outlook & Guidance
Borouge Classification: Public OUTLOOK & GUIDANCE Market Prices Volumes Costs ▪ Stable macro-economic ▪ Q2 2025 sales volumes and ▪ Planned maintenance ▪ Ongoing cost efficiencies environment in Borouge pricing are expected to turnaround of Borouge 3 and optimisation to core markets in the second re
Slide 17: Three polyolefins industry leaders delivering attractive dividends through-the-cycle
Borouge Classification: Classification: Public Public Three polyolefins industry leaders, a global champion delivering attractive dividends through-the-cycle #4 global Advantaged cost Complementary Well-positioned to Best-in-class polyolefins curve positioning value-added benefit from growing resili
Slide 18: Q&A Session
an py Borouge Q&A Session
Slide 19: Appendix – Borouge Group International
Appendix – Borouge Group International (Prepared by ADNOC)
Slide 20: Three world class businesses
Borouge Classification: Public Three world class businesses Delivering considerable value-add via a combined global polyolefins champion Borouge Group International 13.6mtpa Pro-Forma Polyolefins Capacity(6) 5.0mtpa 4.6mtpa 2.6mtpa Polyolefins Capacity(1) Polyolefins Capacity(1,4) Polyolefins Capaci
Slide 21: Borealis and Nova complement Borouge
Borouge Classification: Public Borealis and Nova complement Borouge to create a compelling and holistic market and industry proposition Innovation leaders with differentiated product offering, well-positioned within their respective geographies 100% >75% 1st Quartile Exposure to AECO, Ethane Feedsto
Slide 22: Borouge Group International – A core strategic rationale based on key value levers
Borouge Classification: Public Borouge Group International – A core strategic rationale based on key value levers A global polyolefins champion with significant scale and reach, leadership in technology, innovation & sustainability; supporting superior shareholder returns 1 Global Scale Leading Glob
Slide 23: A leading global polyolefins platform of considerable scale
Borouge Classification: Public A leading global polyolefins platform of considerable scale… …serving as the 4th largest polyolefins player globally… …with significant upside from Borouge 4 project underway… Poised to capitalise on Borouge Group International’s extensive and global sales network Reco
Slide 24: Complementary Geographic Footprint
Borouge Classification: Public Extensive production footprint and sales network spanning all major demand centers and high-growth markets Complementary Geographic Access to global polyolefins demand in all 3 major Footprint consumption areas Ability to optimize netbacks Global salesforce with insigh
Slide 25: Advantaged feedstock costs and 1st quartile position in Europe
Borouge Classification: Public Advantaged feedstock costs in Middle East and North America, and 1st quartile position in Europe Both businesses possess advantages brought about by their position in Europe and North America respectively Feedstock Consistently Well-Positioned Advantaged on European Co
Slide 26: Complementary Demand
Borouge Classification: Public Innovation leadership and complementary product portfolios with a strategic focus on premium grades Ownership of Leading Innovation and R&D Capabilities Complementary Demand Exposure Source: Company information. 26 Notes: (1) Does not include Borealis sales through Bor
Slide 27: Best-in-Class Margins
Borouge Classification: Public Positions the newly created entity with an even stronger financial profile that remains supported by resilient and best-in-class margins Attractive Financial Profile Three Profitable ✓ Complementary Businesses of Scale Attractive Margin Profile ✓ with Expansion via Ide
Slide 28: Steady stream of identified potential synergies totalling $500m p.a.
Borouge Classification: Public Steady stream of identified potential synergies totalling $500m p.a. 25-year track record of strategic cooperation between ADNOC and OMV will ensure smooth synergy realisation Synergy Drivers Synergy Implementation Plan Agreed Between ADNOC & OMV Improved geographical
Slide 29: Substantial TTC EBITDA Growth from Multiple Initiatives
Borouge Classification: Public Substantial TTC EBITDA Growth from Multiple Initiatives 90% of Expected Increase is from New Projects, Efficiency Program and Synergies; 10% Only Relies on Market Normalization Expected Through-the-Cycle EBITDA Borouge & Borealis Nova Chemicals Borouge, Borealis & Nova
Slide 30: Consistent shareholder returns through a transparent and guaranteed policy
Borouge Classification: Public With consistent shareholder returns in the near term through a transparent and guaranteed policy The dividend floor is a unique feature of the dividend policy Dividend Policy (Borouge Group International) Share Buyback Program (Borouge) Potential for additional shareho
Slide 31: Borouge 4 Overview
Borouge Classification: Public Borouge 4 Overview Borouge 4 is Poised to Capitalise on Borouge Group International’s Extensive and Global Sales Network Recontribution at cost(1) envisaged by end of 2026 when fully operational, and expected to be ✓ accretive to earnings and dividends per share Total
Slide 32: Borouge 4 Expected Cost and Timeline
Borouge Classification: Public Borouge 4 Expected Cost and Timeline Expected Timeline Total Cost Breakdown • XLPE2 plant becomes operational Capex1 c.$6.5bn • Hexene-1 plant becomes operational PE 2025 to H1 Units 2026 • PE7 becomes operational Owner’s Costs and Financing c.$1.0bn Costs2 • PE6 becom
Slide 33: Shareholder Structure
Borouge Classification: Public Shareholder Structure 54% 36% A leading integrated O&G company, entrusted to A leading provider of advanced and manage the world’s 6th largest proven oil and 7th largest circular polyolefin solutions globally gas reserves Free Float: 10 Percent 33 Q1 2025 Earnings Pres