The Abu Dhabi-based specialty chemicals company Borouge Plc said net profit for Q4 2023 rose 16% year-on-year (YoY) to $288 as cost reductions offset a fall in revenue.

For the full year 2023, the company reported net profit of $1 billion, impacted by a 16% decline in average selling prices as global polyolefins demand reduced from peak levels in 2022.

Borouge container ready to be shipped. Image courtesy: Borouge
Borouge container ready to be shipped. Image courtesy: Borouge
Borouge container ready to be shipped. Image courtesy: Borouge

This was partially offset by a 1% increase in sales volume to 5.1 million tonnes, Borouge said on Thursday in a regulatory filing on the Abu Dhabi Securities Exchange where its shares trade.

Borouge Research and Development at the Innovation Centre. Image courtesy: Borouge
Borouge Research and Development at the Innovation Centre. Image courtesy: Borouge
Borouge Research and Development at the Innovation Centre. Image courtesy: Borouge

The net profit topped analysts’ mean estimates for both the quarter and the full year. For Q4, they had pencilled in $225 million, while for FY, the estimate was $929 million, according to LSEG data.  

Borouge employees in control room. Image courtesy: Borouge
Borouge employees in control room. Image courtesy: Borouge
Borouge employees in control room. Image courtesy: Borouge

Q4 revenue fell 6% to $1.5 billion while costs reduced 16% over the same period.

The Borouge management proposes to distribute $1.3 billion in dividends for full year 2024, equating to a 6.6% current dividend yield.

(Reporting by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@lseg.com