Inspiring Tomorrow - Corporate Presentation
SIGNIFICANT UPSIDE FROM PRICE INCREASES
An increase in polyolefins prices would generate significant incremental revenues, with
proportionate impact on EBITDA
Illustrative Impact of PE/PP and Propylene Benchmark Prices on Revenues and EBITDA
(Until Nov-27)
Current Spot Prices (March '22)
L10Y Avg. Prices ('12-'21)
Polyethylene Benchmark
Product and Propylene Price Sensitivities (At Estimated 2022 Production Volumes (1))
@ Sensitized Benchmark Prices (2)
($200/t)
($100/t)
+$0/t
+$100/t
+ $200/t
1,184
890
990
1,090
1,190
1,290
(NE Asia CFR, in $ /t)
Polypropylene Benchmark
1,170 1,133
970
1,070
1,170
1,270
1,370
(PP Raffia NEA CFR, in $ /t)
1,198
Propylene Benchmarks
860
960
1,060
1,160
1,260
(NE Asia CFR, in $/t)
1,050
1,245
940
Approximate Change in
Revenues & Costs (3)
(in $m)
240
120
470
(120)
(240)
+350
+700
(470)
(940)
■Additional Revenue
Additional Costs
Approximate Adjusted
EBITDA Impact
(700)
(350)
(in $m)
1)
2)
Sensitivity impact is based on estimated product sales and feedstock purchase volumes for FY 2022, to reflect full ramp-up of PP5
Change in benchmark prices applied on PE and PP prices relative to 2021A prices
3)
72
Change in revenue based on estimated 2022 PE and PP production volumes times change in benchmark price; change in costs based on estimated 2022 propylene
purchase volume times propylene purchase price based on assumed propylene benchmark prices and underlying pricing mechanism
Corporate Presentation | April 2022
Commentary
بروج
Borouge
Increases in PE prices directly flow
דיי
through to Borouge's EBITDA with its
ethane feedstock prices effectively
capped
■ Increases in PP prices positively
impact EBITDA as the feedstock
prices for Borouge's internally
sourced propylene are effectively
fixed and only the propylene
feedstock prices for the share of
propylene supplied by ADNOC
Refining move in line with benchmark
propylene prices. Propylene
benchmark prices have been
assumed to move in parallel with PP
prices for this sensitivity analysis
■ Overall, a large share of the
additional revenues from higher
PE/PP benchmark prices translate
into additional EBITDA as only a
smaller proportion of feedstock costs
moves in line with benchmark prices
INSPIRING TOMORROWView entire presentation