Borouge Plc · ADX:BOROUGE
Borouge — Q4 2023 Earnings Presentation
14 slides from Borouge's earnings presentation, Feb 1, 2024
Slide 1: Analyst & Investor Presentation for Periods Ended 31 December 2023
Borouge Classification: Internal BOROUGE ANALYST & INVESTOR PRESENTATION FOR THE THREE-MONTH AND TWELVE-MONTH PERIODS ENDED 31 December 2023 01 February 2024
Slide 2: Disclaimer
Borouge Classification: Internal DISCLAIMER This presentation has been prepared by the 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 inform
Slide 3: Agenda and Presenters
Borouge Classification: Internal AGENDA AND PRESENTERS Hazeem Sultan Al Suwaidi Q4 and FY 2023 Results Chief Executive Officer Market Update Rainer Hoefling Operational Highlights Chief Marketing Officer Financial Highlights Dr. Hasan Karam Outlook Chief Operating Officer Concluding Remarks Jan-Mart
Slide 4: Q4 & FY 2023 Results
Borouge Classification: Internal Q4 & FY 2023 RESULTS 4 Q4 '23 Earnings Presentation
Slide 5: Q4 / FY 2023 Results Highlights
Borouge Classification: Internal Q4 / FY 2023 RESULTS HIGHLIGHTS Strong operational performance, high sales volumes and significant outperformance of the Value Enhancement Programme Adj. Operating Sales Volumes Net Income Adj. EBITDA Cashflow Q4 2023 Q4 2023 Q4 2023 Q4 2023 1,359 kt $288 million $60
Slide 6: Polyolefins Prices & Premia
Borouge Classification: Internal POLYOLEFINS PRICES & PREMIA Product Prices and Premia Evolution Commentary 1,318 1,202 1,166 1,222 1,129 1,082 1,093 1,077 1,007 1,014 1,016 1,041 945 967 991 914 938 916 919 890 891 891 860 880 Benchmark Prices vs Avg. ▪ Slow economy and de-stocking activities Selli
Slide 7: Operational Performance
Borouge Classification: Internal OPERATIONAL PERFORMANCE Sales Volumes(1) Commentary +1.5% 2,676 2,715 Polyethylene +2.5% +2.5% (kt) ▪ Excellent sales volumes at 5,116 kt in 2023, 733 751 733 751 up 1% on a year-on-year basis. FY ‘22 FY ‘23 Q4 ‘22 Q4 ‘23 Q3 ‘23 Q4 ‘23 ▪ Strong sales volumes achieved
Slide 8: Revenue & Profitability
Borouge Classification: Internal REVENUE & PROFITABILITY Key Metrics(1) Commentary (3) Polyethelene -14% Polypropylene 6,728 Ethylene & others 5,791 -6% 2,706 - 2,402 Revenue 1,593 1,497 1,496 1,497 ($m) 3,775 672 620 637 620 3,276 880 858 840 858 247 113 41 19 20 19 FY ‘22 FY ‘23 Q4 ‘22 Q4 ‘23 Q3 ‘
Slide 9: Costs
Borouge Classification: Internal COSTS Key Metrics(1) Commentary % of Revenue 48% 53% 54% 50% 52% 50% 3,237 3,062 Cost of Sales -12% -2% ($m) -5% 861 755 773 755 ▪ Value Enhancement Program outperforms its revised target of $500 million delivering $607 FY ‘22 FY ‘23 Q4 ‘22 Q4 ‘23 Q3 ‘23 Q4 ‘23 milli
Slide 10: Capex & Free Cash Flow
Borouge Classification: Internal CAPEX & FREE CASH FLOW Key Metrics(1) Commentary 199 189 Capital Expenditure ($m) ▪ Q4 adjusted operating free cashflow of $526 +5% 76 74 74 million up +13% YoY -2% 20 +273% FY ‘22 FY ‘23 Q4 ‘22 Q4 ‘23 Q3 ‘23 Q4 ‘23 ▪ Cash conversion in Q4 of 88% due to high capex sp
Slide 11: Value Enhancement Programme
Borouge Classification: Internal VALUE ENHANCEMENT PROGRAMME $607m achieved in cost savings and revenue optimisation in FY 2023 Borouge is well-positioned on overall cost basis going into 2024 1. Reinforcing robust financial profile 2. Positioning for sustainable future growth 3. Proactively address
Slide 12: Outlook / Guidance
Borouge Classification: Internal OUTLOOK / GUIDANCE ▪ The polyolefins market remains challenging in 2024 against the backdrop of macroeconomic and geopolitical Market uncertainty, short term polyolefin capacity increases and muted global demand ▪ Market analysts anticipate a soft pricing environment
Slide 13: Concluding Remarks
Borouge Classification: Internal CONCLUDING REMARKS High operating and Strong sales Well-positioned on Significant growth $1.3 billion dividend asset reliability rates volumes with focus overall cost basis going planned from Borouge 4 guidance for FY 2024 supporting strong on value-add into 2024 (fo
Slide 14: Thank You
Borouge Classification: Internal THANK YOU www.borouge.com/en/investor-relations ir@borouge.com