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The Abu Dhabi-based specialty chemicals company Borouge Plc said net profit for Q1 2024 rose 37% year-on-year (YoY) to $273 million as cost reductions offset a fall in revenue.
The company posted a 6% drop in revenue for the period to $1.30 billion, primarily due to a 16% drop in sales volume due to feedstock-related operational turnaround.
The net profit easily beat analysts’ mean estimate of $190 million, while revenue was mostly in line, according to LSEG data.
In the first quarter, the overall cost base decreased 20% from a year earlier and 18% on the previous quarter to $739 million, it said in a statement on Tuesday.
Borouge’s average sales prices increased from the previous quarter, 4% for polyethylene and 6% for polypropylene, compared to a 1% rise in global benchmark prices for both products.
The company said it remains committed to paying a dividend of $1.3 billion in 2024, with current dividend yield at 6.5%.
It added that Borouge 4 production facility, expected to raise annual capacity by 28% to 6.4 million tonnes, is over 60% complete.
(Reporting by Brinda Darasha; editing by Seban Scaria)
