Photo Credit : WAM
XRG, ADNOC’s international investment arm, reported resilient second-quarter performance across its chemicals portfolio, highlighting the benefits of diversification, operational strength and disciplined execution.
Through Borouge International, Covestro and Fertiglobe, XRG has developed a portfolio of leading chemicals and advanced materials businesses with operations across multiple regions and exposure to a broad range of end markets.
The portfolio is designed to reduce dependence on any single geography, product category or market cycle, while expanding ADNOC’s presence in higher-value chemicals, advanced materials and fertilisers.
During the second quarter of 2026, the three businesses delivered solid earnings, providing an early indication of how XRG’s international chemicals strategy can support long-term value creation.
Borouge International, established in March 2026 through the combination of Borouge plc, Borealis and NOVA Chemicals, recorded adjusted EBITDA of US$1.8 billion in its first full quarter as a combined business.
The performance was supported by a diversified operating platform spanning the Middle East, Europe and North America. The company combines ADNOC’s advantaged feedstock position with technology expertise, international market access and a broad global customer base.
Borouge International is also progressing initiatives expected to generate more than US$500 million in EBITDA synergies over time.
Borouge plc, which remains listed on the Abu Dhabi Securities Exchange, reaffirmed its annual dividend intention of 16.2 fils per share. Borouge International has also established a shareholder returns policy that includes a minimum annual dividend of more than US$2 billion.
Covestro, which became part of XRG’s portfolio in late 2025, delivered first-half EBITDA of €669 million. The performance was supported by commercial discipline, cost management and continued strength in its speciality materials business.
The company supplies customers across sectors including automotive, construction, electronics and healthcare, giving XRG increased exposure to advanced materials and higher-value industrial supply chains.
Fertiglobe also delivered strong second-quarter results, with adjusted EBITDA more than doubling to US$371 million. The increase was supported by stronger nitrogen fertiliser markets and solid operational performance across the company’s international assets.
Fertiglobe’s performance reflected its ability to capture opportunities across different markets and global trade routes while maintaining its position as one of the world’s leading producers of nitrogen fertilisers, which remain essential to global food production.
Together, Borouge International, Covestro and Fertiglobe give XRG exposure to polyolefins, advanced materials and fertilisers across a wide range of geographies, customers and industries.
The international portfolio is also creating value for the UAE. Earnings generated across global markets contribute to XRG and its shareholders, while the listings of Borouge plc and Fertiglobe on the Abu Dhabi Securities Exchange give UAE investors direct exposure to their financial performance.
A broader international portfolio also supports ADNOC’s resilience by reducing its dependence on individual markets and economic cycles.
XRG’s international expansion is further contributing to the development of industrial capabilities and technology in the UAE.
Borouge International, jointly owned by XRG and OMV, brings together more than 16,500 patents and seven global innovation centres.
The combined expertise is supporting the development of Borouge 4 in Ruwais, which is expected to increase the site’s production capacity to approximately 6.4 million tonnes annually and make it the world’s largest single-site polyolefins complex.
Collaboration between businesses within the wider portfolio is also beginning to take shape.
During the first half of 2026, Covestro, Fertiglobe and TA’ZIZ, the joint venture between ADNOC and ADQ, announced initiatives to explore opportunities across ammonia, nitric acid and advanced materials value chains in the UAE.
As XRG continues expanding its international chemicals platform, the performance of Borouge International, Covestro and Fertiglobe highlights how scale, geographic diversification and portfolio integration can support sustainable growth, cash generation and long-term value creation for shareholders and the UAE.
