XRG's global chemicals portfolio delivers resilient Q2 earnings across Borouge, Covestro and Fertiglobe
ADNOC's international investment arm XRG reports strong second-quarter performance from its expanded chemicals holdings, with Borouge International posting $1.8 billion adjusted EBITDA and Fertiglobe more than doubling earnings to $371 million.
XRG's global chemicals portfolio delivers resilient Q2 earnings across Borouge, Covestro and Fertiglobe
ADNOC's international investment arm XRG delivered resilient earnings across its global chemicals portfolio during the second quarter of 2026, with major holdings Borouge International, Covestro and Fertiglobe reporting solid results despite varied market conditions.
The platform, launched in November 2024 with an enterprise value exceeding $80 billion and formally operational since the first quarter of 2025, has assembled exposure spanning polyolefins, advanced materials and fertilisers across the Middle East, Europe and North America.
Borouge International reports strong debut quarter
Borouge International recorded adjusted EBITDA of $1.8 billion in its first full quarter as a combined entity. The business was created on March 31, 2026 through the combination of Borouge plc, Borealis and NOVA Chemicals, which was acquired for $13.4 billion including debt.
The formation established the world's fourth-largest polyolefins producer with annual capacity of 13.6 million metric tons across three continents. The company is advancing initiatives expected to generate more than $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 exceeding $2 billion.
The combined entity operates as an equal 50-50 partnership between XRG and OMV, with each holding a 50 per cent stake.
Fertiglobe earnings surge on stronger markets
Fertiglobe more than doubled adjusted EBITDA to $371 million in the second quarter, supported by stronger nitrogen fertiliser markets and operational performance across its international assets.
The company, originally formed as a strategic partnership between OCI and ADNOC in September 2019 and listed on ADX in 2021, serves as the world's largest seaborne exporter of urea and ammonia combined. It is also the largest nitrogen fertiliser producer in the Middle East and North Africa, operating production facilities in Egypt, Algeria and the UAE.
ADNOC completed acquisition of OCI's 50 per cent plus one share stake in Fertiglobe on October 15, 2024 for $3.62 billion, increasing ADNOC's ownership to 86.2 per cent. The holding is now managed within XRG's portfolio.
Fertiglobe's ADX listing provides UAE investors direct exposure to the company's performance and its role in global food production supply chains.
Covestro contributes advanced materials earnings
Covestro, which joined XRG's portfolio following completion of its €14.7 billion acquisition including debt on December 10, 2025, recorded first-half EBITDA of €669 million.
The transaction received conditional EU approval in November 2025 before closing the following month. Covestro's operations span speciality and advanced materials supplied to automotive, construction, electronics and healthcare industries, extending XRG's reach beyond traditional commodity chemicals.
Ruwais expansion advances
The international portfolio is supporting industrial expansion in the UAE. Borouge International, which combines more than 16,500 patents and seven innovation centres globally, is backing development of Borouge 4 in Ruwais.
The project is over 90 per cent complete with first plant startup expected during the first quarter of 2026, adding 1.4 million tonnes of polyethylene capacity. Once completed, the expansion would increase production capacity at the site to approximately 6.4 million tonnes annually, making Ruwais the world's largest single-site polyolefins complex.
Portfolio companies explore UAE opportunities
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.
XRG aims to more than double its asset value over the next decade, targeting positions as a top three global chemicals platform and top five global chemicals player. The strategy provides exposure across different regions, customers and end markets while extending ADNOC's presence into higher-value chemicals, advanced materials and fertilisers.
Earnings generated by the international businesses flow back to XRG and its shareholders, while listed interests in Borouge plc and Fertiglobe allow UAE investors to participate directly in portions of the portfolio.
