Borouge Plc · ADX:BOROUGE
Borouge — Q2 2024 Earnings Presentation
14 slides from Borouge's earnings presentation, Jul 31, 2024
Slide 1: Q2 / H1 2024 Results Presentation
Borouge Classification: Internal BOROUGE Q2 / H1 2024 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 Q2 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: Q2 / H1 2024 Results Highlights
Borouge Classification: Internal Q2 / H1 2024 RESULTS HIGHLIGHTS Excellent production & sales volumes and focused cost discipline drive strong results H1 2024 Q2 Adj. Operating Net Profit Q2 Net Profit Q2 Sales Volumes Q2 Adj. EBITDA FCF $581 million (+35%, YoY) $308 million 1,311 kt $613 million $5
Slide 5: Delivering the Highest EBITDA Margins in the Industry
Borouge Classification: Internal DELIVERING THE HIGHEST EBITDA MARGINS IN THE INDUSTRY Substantial and sustained EBITDA margin profile through-the-cycle $ millions Percentage (%) 1 Operational Excellence 650 $607m positive impact from the Value 45% 1. 44% Enhancement Program in FY 2023 Industry Lead
Slide 6: Polyolefins Prices & Premia
Borouge Classification: Internal POLYOLEFINS PRICES & PREMIA Product Prices and Premia Evolution Commentary 1,166 ▪ Polyolefin prices improved in Q2 due to 1,182 1,062 1,117 1,122 1,113 1,060 1,057 1,051 upbeat oil / feedstock prices, global logistics 1,041 926 908 916 901 915 916 908 891 889 924 co
Slide 7: Operational and Commercial Performance
Borouge Classification: Internal OPERATIONAL AND COMMERCIAL PERFORMANCE Capacity Utilisation Rates & Sales Volumes Commentary % Utilisation rate 94% 110% 110% 114% 105% 114% 1,441 1,232 Polyethylene 659 752 688 752 ▪ Highest-ever total quarterly production in Q2 Sales Volume +17% 24 of 1,355kt, with
Slide 8: Revenue & Profitability
Borouge Classification: Internal REVENUE & PROFITABILITY Key Metrics Commentary (3) Polyethelene Polypropylene 74 19 Ethylene & others 1,145 1,088 9 Revenue 5 9 9 +0.3% +6% +15% ($m) 591 606 483 606 ▪ Strong Q2 performance supported by record 1,578 1,698 820 888 810 888 high production, robust sales
Slide 9: Costs
Borouge Classification: Internal COSTS Key Metrics Commentary % of Revenue 55% 48% 53% 49% 46% 49% 1,531 1,334 Cost of Sales 750 739 739 (excl D&A) 594 ▪ In Q2 total cost base (excl. D&A) remained -13% -1% +24% ($m) flat YoY and up 21% QoQ primarily due to higher production volumes H1 23 H1 24 Q2 23
Slide 10: Capex & Free Cash Flow
Borouge Classification: Internal CAPEX & FREE CASH FLOW Key Metrics Commentary 105 Capital Expenditure 48 ($m) 33 33 22 15 ▪ CAPEX in Q2 of $33m -54% +48% +116% H1 23 H1 24 Q2 23 Q2 24 Q1 24 Q2 24 ▪ Q2 adjusted operating free cashflow of $581 million up +17% YoY and +5% QoQ % Cash Conversion (1) 89%
Slide 11: Borouge Positioned to Deliver Accelerated Growth
Borouge Classification: Internal BOROUGE POSITIONED TO DELIVER ACCELERATED GROWTH Strong pipeline of growth projects positioned across (1) substantial organic capacity expansion, (2) geographic diversification of production footprint (3) differentiated & specialty polyolefins at scale International
Slide 12: Outlook / Guidance
Borouge Classification: Internal OUTLOOK / GUIDANCE Market Prices Volumes Costs ▪ Stable macro-economic ▪ Polyolefin prices expected to ▪ Continued strong production ▪ Ongoing cost efficiencies and environment in Borouge core remain stable during H2 2024 volumes to continue in optimization to contin
Slide 13: Our Ownership Structure
Borouge Classification: Internal OUR OWNERSHIP STRUCTURE Shares are listed on the Abu Dhabi securities Exchange (ADX) under the symbol “BOROUGE” Free-float 10% 30.058 Billion ADNOC Borealis Shares 54% 36% 13 Q2 2024 Earnings Presentation
Slide 14: Borouge Capital Markets Day 2024
Borouge Classification: Internal BOROUGE CAPITAL MARKETS DAY 2024 Please join us for Borouge’s first capital markets day event in Abu Dhabi Date: 30th October 2024 Venue: Abu Dhabi Energy Centre www.borouge.com/en/investor-relations ir@borouge.com