Newly formed global platform delivers value and resilience
Borouge Group International AG (“Borouge International” or “the Group”), a global leader in polyolefins formed from the combination of Borouge Plc, Borealis and Nova Chemicals, today reports strong financial results for its first three months, ending 30 June 2026 (“Q2”).
Roger Kearns, CEO of Borouge International said: "This quarter has immediately demonstrated the strength and benefits of Borouge International and the resilience of our business model. Our diversified footprint, premium product range and disciplined operational execution enabled us to continue serving our customers and delivering value to shareholders in a highly dynamic environment. The global scale, reach and complementary nature of our assets provides greater flexibility and reliability. As one company we are now positioned to leverage comparative strengths across regions and this will be our key advantage as we embark on building the world’s leading global polyolefins company."
Business development
Price benchmarks increased by an average of 50%² in Q2 compared to Q1 2026, driven by a global shortage of polyolefins, due to regional developments in the Middle East. In this context, Borouge International was able to maintain supply of differentiated products across all regions and continued to serve its customers.
Adjusted EBITDA margin was strong at 33.0%, with higher selling prices being partially offset by lower volumes and increased distribution costs, in particular in the Middle East and Asia. Input costs also increased in locations where the Group purchases feedstock via variable price contracts.
Operations
Plants in North America and Europe operated at high utilization rates with unrestricted access to feedstock and logistics services.
Production volumes at the Group’s facilities in the UAE, as reported separately by Borouge International’s listed subsidiary Borouge Plc, were impacted by asset damage resulting from an incident on 5 April 2026, reducing utilization to 60% in Q2. Repair works were successfully expedited throughout the quarter and full asset availability was restored by the end of June, with no significant impact on capital expenditure in FY 2026.
Integration progress
Borouge International was formed in March 2026 through the combination of Borouge Plc, Borealis and NOVA Chemicals. Well over $500 million of EBITDA synergies have been identified with approximately 75% to be realized within three years. During Q2, initial steps were taken to integrate the business under its new governance and management structure. Wide-ranging value creation initiatives were launched, focused on maximizing cost advantages and driving value from the Group’s differentiated high-performance product portfolio.
Outlook
The Group is well on track to deliver a strong first year and will focus in the coming quarters on creating a new integrated company and realizing synergies while seeking to maximize output at its production facilities worldwide to support customer requirements.
The spike in polyolefin prices during the quarter is expected to be followed by seasonally lower pricing in H2, while remaining supportive compared to prior years. A recovery in utilization rates in the UAE will be dependent on the level of free movement of maritime traffic through the Strait of Hormuz. Assuming normalization of freight routes and a restoration of industry production levels, margins may reduce in the second half of 2026 if average selling prices decline more quickly than key input and logistics costs.
Borouge International is well placed to navigate volatility whilst progressing its strategy to generate significant new value for shareholders from its differentiated asset base and premium pricing supported by proprietary technology.
Contact
media@borougeinternational.com
+43 1 22 400 899
ir@borougeinternational.com
+971 585 798 720
About Borouge International
Borouge Group International AG (Borouge International) is a global leader in polyolefins formed in 2026 through the combination of Borouge Plc, Borealis and NOVA Chemicals. Backed by long-term shareholders XRG, the international investment arm of ADNOC, and OMV, Borouge International brings together world-class assets, advantaged feedstock access and proprietary technology to deliver reliable high-performance polyolefin solutions across consumer products, infrastructure, energy, mobility and advanced products.
Borouge International combines a differentiated asset base, global reach and deep technical expertise to serve customers across key growth markets. The company is headquartered in Vienna, Austria, with a regional headquarters in Abu Dhabi, UAE, and corporate hubs in North America and Asia Pacific.
Learn more about the company: https://www.borougeinternational.com/.
Notes
- Adjusted EBITDA is stated before non-recurring expenses of $154 million
- Price benchmark is average of North East Asia HDPE Blow Molding; Western Europe HDPE Blow Molding; North America LLDPE
Financial information included in this document relating to the consolidated financial results of Borouge Group International AG for the three months to 30 June 2026 is unaudited.