XRG, ADNOC's international investment platform, reported a strong performance from its global chemicals portfolio during the second quarter of 2026, highlighting the effectiveness of its diversified investment strategy. Through its ownership of Borouge International, Covestro, and Fertiglobe, XRG has established a balanced portfolio that spans chemicals, advanced materials, and fertilizers, reducing reliance on individual markets while strengthening its presence across high-value industrial sectors.
The company's latest quarterly results reflected stable earnings across all three businesses despite varying market conditions. The diversified geographical footprint, broad customer base, and disciplined operational management enabled the portfolio to deliver consistent financial performance and reinforced XRG's long-term growth strategy.
Borouge International, created in March 2026 following the integration of Borouge plc, Borealis, and NOVA Chemicals, reported adjusted EBITDA of USD 1.8 billion in its first complete quarter as a unified company. The strong performance was supported by operations across the Middle East, Europe, and North America, combining ADNOC's competitive feedstock advantage with advanced technologies, global distribution networks, and diversified end markets. The company also continued integration efforts that are expected to generate more than USD 500 million in annual EBITDA synergies over time. Borouge plc reaffirmed its annual dividend target of 16.2 fils per share, while Borouge International introduced a shareholder return policy featuring a minimum annual dividend exceeding USD 2 billion.
Covestro, acquired by XRG in late 2025, posted first-half EBITDA of EUR 669 million. The company maintained profitability through disciplined pricing strategies, effective cost controls, and sustained demand for its specialty materials used in automotive, construction, electronics, and healthcare industries. Its inclusion strengthens XRG's position in high-performance materials and advanced manufacturing value chains.
Fertiglobe also recorded a notable improvement during the quarter, with adjusted EBITDA rising to USD 371 million, more than double the level achieved in the previous year. Higher nitrogen fertilizer prices, combined with efficient operations across its international production network, supported the strong financial results. The company continued to benefit from its leading position in global nitrogen fertilizer markets, serving the agricultural sector across multiple regions.
Beyond financial performance, XRG's international portfolio continues to create value for the UAE by generating global earnings, supporting local investors through the Abu Dhabi Securities Exchange listings of Borouge plc and Fertiglobe, and transferring advanced technologies into the country. Borouge International's extensive innovation network, comprising over 16,500 patents and seven research centers, is supporting the expansion of the Borouge 4 project in Ruwais, which will become the world's largest single-site polyolefins complex with annual production capacity of approximately 6.4 million tonnes. Meanwhile, collaboration among Covestro, Fertiglobe, and TA'ZIZ is opening new opportunities across ammonia, nitric acid, and advanced materials value chains, further strengthening the UAE's industrial ecosystem.
Impact on Products
The strong quarterly performance reinforces the competitive position of XRG's key products, including polyolefins, engineering plastics, specialty materials, and nitrogen fertilizers. Continued investment in capacity expansion, innovation, and global integration is expected to improve product availability, enhance technological capabilities, and strengthen supply reliability. Projects such as Borouge 4 will significantly expand polyolefin output, while collaborations in ammonia and advanced materials will support the development of higher-value chemical products. Overall, customers are likely to benefit from greater product stability, improved supply security, and continued innovation across multiple industrial sectors.
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