Abu Dhabi, United Arab Emirates – Brugge PLC, one of the leading petrochemical companies providing innovative and diverse polyolefin solutions, announced net profits of AED 709 million during the second quarter of 2025, exceeding market expectations.
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This performance reflects the implementation of planned periodic maintenance work at the Bruges 3 plant with high efficiency, which enabled the company to maintain strong profit margins and achieve large cash flows, supported by effective cost management and the continued achievement of price premiums in its high-value product portfolio.
The planned periodic maintenance work at the Bruges 3 plant was successfully carried out during the second quarter, being completed safely and within budget, and the facilities that underwent maintenance were delivered eight days ahead of schedule.
This is the largest and most complex periodic maintenance work carried out to date, and the company has succeeded in reducing its implementation time by 15%.
This performance reflects the efficiency of the company’s planning and implementation teams. Planned periodic maintenance, carried out every six years, is essential to maintain the efficient performance of Bruges’ world-class assets and maintain high utilization rates and strong production volumes.
The company’s adjusted EBITDA for the second quarter amounted to AED 1.62 billion, and it succeeded in maintaining a strong EBITDA margin of 34%, supported by improving the product range throughout the period of periodic maintenance work.
Hazim Sultan Al Suwaidi, CEO of “Bruges”, said that the company’s outstanding results are supported by strong cash flows, disciplined implementation of the strategy, and fixed price premiums, including the successful completion of the planned periodic maintenance work at the ’Bruges 3‘ factory, which is the largest periodic maintenance operation to date.
He stressed the commitment to achieving value for shareholders by renewing the determination to raise dividends to reach 16.2 fils per share for the year 2025, and the proposed dividends for the first half of 2025 equivalent to 8.1 fils per share, which are scheduled to be distributed in September, noting that this increase is expected to constitute the minimum target for dividends until at least 2030 under the umbrella of the proposed ’Bruges International Group‘.
Strong product pricing premiums continued to outperform reference prices for both polyethylene and polypropylene as one of the most prominent features of this quarter, achieving AED 914 per ton for polyethylene and AED 518 per ton for polypropylene, both of which exceeded management directives across economic cycles.
In detail about the financial results of the second quarter, “Bruges” revenues reached 4.79 billion dirhams, while the total sales volume reached 1.1 million tons, in stable performance compared to the previous quarter, as a result of the sale of about 140 thousand tons of inventory, and high-value products continued to account for 41% of the total sales volume, with strong momentum in infrastructure solutions and advanced packaging.
Capital expenditures during the second quarter amounted to AED 477 million, and Bruges concluded this period with a net debt-to-earnings before interest, taxes, depreciation and amortization rate of 1.0 times, reflecting its financial flexibility and the strength of its balance sheet.
Regarding the results of the first half of the year, “Bruges” achieved revenues of up to 10 billion dirhams, while adjusted profits before deducting interest, taxes, depreciation and amortization amounted to 3.69 billion dirhams, supported by strong profit margins as a result of high price premiums, efficiency in controlling costs, and inventory sales. Sales volumes also recorded 2.39 million tons, a slight decrease of no more than 2% on an annual basis, which reflects “Bruges’ operational flexibility and its ability to adapt to changes.
Bruges has submitted an offer to increase the value of the interim dividend distribution for the first half of 2025 by the equivalent of 8.1 fils per share, subject to the approval of the General Assembly scheduled to meet next August. These distributions reflect the first installment in the company’s plan to raise the dividend distribution for 2025 to 16.2 fils per share, up from 15.88 fils in 2024, representing 6.1% of the estimated return from the dividend distribution according to the current share price It is among the highest on the Abu Dhabi Securities Market, strengthening the company’s distribution increase framework.
Since the company’s initial public offering in 2022, Brugge has paid a total of AED 13.13 billion in cash dividends to shareholders. Following the completion of the proposed Brugge International Group deal, the new entity intends to maintain an annual minimum dividend of at least AED 16.2 per share until at least 2030, representing cumulative shareholder returns of approximately 37 percent, with a strong potential for a stock appreciation and a dividend rate of 90% From net profit.
Borouge continues to implement its share buyback program, which was approved by the General Assembly in April, reflecting the company’s strong confidence in its future growth prospects, as it purchased 125 million shares at the end of the first half of the year, and these transactions were disclosed in accordance with the regulatory requirements of the Abu Dhabi Securities Market.
Brugge continues to enhance its AI, digital transformation and technology programme, which has generated an additional value of AED 1.13 billion since the beginning of the year until now. One of the most prominent milestones witnessed by the programme this year was the launch of the “Proof of Concept” project in cooperation with Honeywell, to develop the first AI-powered control room in the petrochemical sector, enabling the autonomous operation of Brugge’s facilities in Rouis.
