Abu Dhabi-based petrochemicals company Borouge reported a 9% fall in net profit to $282 million (AED1.04 billion) in the Q3 2023 amid a decline in average selling prices.

Revenue fell 11% year-on-year (YoY) to $1.5 billion, but rose 6% quarter-on-quarter.

Despite top- and bottom-line performance in the third quarter facing market-related pricing challenges, the company delivered an adjusted EBITDA margin of 40%, up 3% YoY due to improved operational efficiencies, it said on Monday in a regulatory filing on the Abu Dhabi Securities Exchange where its shares trade.

Borouge said the outlook for polyolefins market remains challenging, with pricing expected to operate within a narrow band of volatility throughout the fourth quarter of 2023.

Also, the Borouge 3 plant and associated feedstock operations will undergo a planned maintenance shutdown in 2024, resulting in an estimated total volume impact of 500 kilotonnes, it said.

The company’s net profit dropped 39% to $713 million in the first nine months of 2023 compared to $1.61 billion a year earlier as revenue fell 16% YoY.

In August, Borouge shareholders approved an interim dividend of $650 million for the first half of 2023           

(Editing by Brinda Darasha; brinda.darasha@lseg.com)