Austria-based Borouge International increased third-quarter polyolefins sales by 11pc from the preceding quarter to 2.61mn t, supported by recovering UAE production and higher sales to Asia.
Sales to Asia rose by 52pc as ethane feedstock supply to the group's UAE plants recovered, the company said today. Group plants in Europe and North America continued operating at high rates without restrictions.
The company's UAE plants exported all available production using routes that did not depend on the strait of Hormuz.
Average polyethylene (PE) and polypropylene (PP) capacity utilisation at the UAE plants recovered to 76pc in the third quarter, from around 60pc in April-June. The plants produced 553,000t of PE and 397,000t of PP, compared with 327,000t and 394,000t, respectively, in the second quarter.
Borouge began commissioning the 700,000 t/yr PE7 plant in October as part of its Borouge 4 expansion at Ruwais, Abu Dhabi. Further Borouge 4 units are expected to start in the fourth quarter and in 2027.
Initial polymer production from the 1.4mn t/yr Borouge 4 project began in April. The expansion is expected to raise the Ruwais complex's total polymer capacity by 28pc to 6.4mn t/yr once fully operational.
Borouge International's revenues fell to $4.9 bn in the third quarter, from $5.5 bn in the second quarter, owing to price declines while profit also fell by 83pc.
"The impact on profitability was most pronounced in Europe, where naphtha-based feedstock costs remained elevated, while conflict-related ethane constraints held back UAE earnings," the company said.
Borouge International expects stronger pricing to continue in the fourth quarter. It also sees higher production, with utilisation rates of above 90pc projected at its UAE plants.
Borouge International was formed in March this year, following the merger of Austria-based Borealis and UAE-based Borouge, alongside the acquisition of Canada-based Nova Chemicals.
