Inspiring Tomorrow - Corporate Presentation
COST BREAKDOWN
بروج
Borouge
The major cost items at Borouge are feedstock costs and other variable & fixed production costs
Cost Development(1)
D&A (5)
S&D (4)
G&A (3)
COGS (excl. D&A) (2)
(in $m)
(in $m)
(in $m)
1,140
I
2,727
I
2,276
I
1,937
2,016
1,557
1,106
1,142
I
797
874
1,170
1,170
I
■Feedstock Costs
■Other Variable & Fixed Production Costs
I
I
1
88
108
98
137
I
I
I
483
357
I
245
266
1
(in $m)
I
693
538
505
516
I
I
2019A
2020A
2021A
I
2021PF(6)
Commentary
דיי
The main components of COGS are feedstock
costs and other variable & fixed production costs
Feedstock costs comprise ethane and
propylene purchased from ADNOC
Other variable costs mainly comprise
utilities, catalysts, chemicals and
additives, as well as purchase of Borealis
volumes sold by PTE
- Fixed production costs mainly comprise
labor and maintenance costs
Increase in Selling & Distribution (S&D) costs
in 2021 driven by higher shipping and pallets cost
and logistics constraints in H2
- Mainly includes logistics and marketing
costs
Decrease in Depreciation & Amortization
(D&A) in 2020 versus prior year due to a reset of
the depreciation period from 20 to 25 year
Required by IFRS due to engineering
study that showed longer than expected
asset life at existing Borouge assets
Sources: Company Information
1)
ADP only, excluding 2021 PF
4)
2)
COGS excluding depreciation on goods sold, depreciation on unsold inventory as of
previous year end, amortization on goods sold and right-of-use-assets
5)
70
Corporate Presentation | April 2022
6)
General and Administrative excl. Depreciation and Amortization
Selling and Distribution
Depreciation and Amortization. Includes depreciation on property, plant & equipment and
amortization of intangible assets and right of use assets.
Unaudited pro forma financial information reflecting the combination of ADP and PTE as if it
had occurred on 1-Jan-2021
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