Investment Rating - The report assigns a positive investment outlook for Borouge, indicating confidence in its market position and future performance [1]. Core Insights - Borouge is positioned as a global leader in the polyolefins industry, maintaining a strong cost and profit leadership status [1]. - The establishment of Borouge Group International (BGI) is expected to enhance its competitive edge, with a projected EBITDA of over $7 billion throughout the cycle and annual synergies of $500 million [3][4]. - BGI is anticipated to maintain its cost leadership in the global petrochemical cost curve, primarily due to its use of natural gas liquids as feedstock and the economies of scale from its integrated production facilities [3][4]. - The company expects to achieve a price premium for its polyethylene and polypropylene products, with projected premiums of $200/ton and $140/ton, respectively, due to its differentiated Borstar® technology [4]. - BGI's average EBITDA margin is forecasted to reach 26% from FY2020 to FY2024, significantly higher than the industry average of 16% [4]. Company Overview - Borouge is a diversified petrochemical company headquartered in Abu Dhabi, recognized as one of the largest petrochemical producers globally [2]. - The company operates one of the world's largest integrated polyolefins production facilities in Abu Dhabi and has logistics centers across the Middle East, North Africa, Europe, and Asia [2]. - Borouge's primary products consist of polyethylene and polypropylene, with sales concentrated in Europe (39%), Asia (25%), and the Americas (23%) for FY2024 [2]. Strategic Developments - The merger of Borouge and Borealis, along with the acquisition of NOVA Chemicals, will create a new entity, BGI, with a total capacity of 13.6 million tons/year, making it the fourth-largest globally [3]. - The transaction is expected to be completed in Q1 2026, further solidifying Borouge's market position [3]. - Borouge's dividend policy aims to distribute $1.3 billion in dividends for FY2025, with a minimum annual dividend of 16.2 fils per share [6]. Market Outlook - The petrochemical industry is showing early signs of recovery, with Borouge expressing confidence in the sector's strength despite recent challenges [6]. - The company is conducting feasibility studies for a new specialty polyolefins plant in China, reflecting its positive outlook on the Chinese market, which accounts for approximately 30% of its total sales [7].
博禄：全球聚烯烃行业龙头，稳固全球成本和利润领先地位
Haitong Securities International·2025-03-31 11:31