What caused Borouge’s Q2 production and sales volumes to decline sharply year on year?

Borouge’s Q2 production and sales volumes declined sharply—by 24% and 23% year on year, respectively—due to asset damage at the Ruwais complex on 5 April caused by falling debris from an air-defense interception, which triggered fires and forced temporary suspension of operations; additionally, disruption linked to the closure of the Strait of Hormuz further impacted logistics and operations.

How did Borouge manage customer deliveries despite the operational disruption and Strait of Hormuz closure?

Borouge successfully shipped all volumes produced during Q2 plus an additional 98,000 tonnes from first-quarter inventory by implementing alternative road, rail, and sea logistics routes—enabling full customer delivery without dependency on the Strait of Hormuz.

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Borouge reported a 1% drop in Q2 net profit to $191 million due to higher costs and lower volumes from operational disruptions, though revenue rose on record polyolefin premiums. The company restored full production by June and started new XLPE capacity, expecting improved utilization in H2.

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