Q2 2024 Borouge Plc Earnings Call Transcript
Key Points
- Borouge PLC (ADX:BOROUGE) achieved the highest ever quarterly production volumes in Q2 2024, demonstrating strong operational performance.
- The company reported a net profit of $308 million in Q2, marking a 33% increase year-on-year, and a 35% increase in net profit on a half-year basis.
- Borouge PLC maintained an exceptional EBITDA margin of 41% in Q2, reflecting ongoing operational efficiencies.
- Sales volumes increased significantly, with polyethylene up by 9% and polypropylene up by 25% quarter-on-quarter.
- The company is strategically positioned for growth with several investment projects, including the Borouge 4 project, which will increase production capacity by 28% by Q4 2025.
- Blended average selling prices for polyethylene and polypropylene were relatively flat compared to the previous quarter and down 2% year-on-year.
- General and administrative expenses increased by 10% year-on-year due to one-off items.
- The company faces logistical challenges, particularly in shipping to western markets, which could impact sales distribution.
- The premium above benchmark prices for polyethylene and polypropylene decreased slightly in Q2 compared to Q1.
- Borouge PLC's feedstock price agreement with ADNOC is due for repricing in 2027, which could lead to higher costs.
A warm welcome to everyone and thank you for joining Borouge's second quarter earnings call. My name is Samar Khan, and I'm the Vice President of Investor Relations at Borouge. I have with me today the Borouge management team, Chief Executive Officer, Hazeem Al Suwaidi; Chief Marketing Officer, Rainer Hoefling; Chief Operating Officer, Dr Hasan Karam; and Chief Financial Officer, Jan-Martin Nufer.
We'll begin with a short presentation by the management team in respect to performance for the second quarter, as well as our outlook for the rest of the year. We'll then open the call to your questions. I'll now hand over to Hazeem to present highlights from the quarter. Over to you Hazeem.
Thank you, Samar. I'm pleased to announce that Borouge has delivered yet another outstanding set of results. During the second quarter, we achieved the highest ever quarterly production volumes, strong sales volumes, and healthy pricing premium while
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
