Off The 2Q26 Call

Research evidence excerpt

Off The 2Q26 Call

Update

July 31, 2026 09:54 AM GMT

Morgan Stanley & Co. International plc+MBorouge PLC | Europe Ricardo Rezende, CFA

Equity Analyst

Off The 2Q26 Call Ricardo.Rezende@morganstanley.comSylvia C Richards +44 20 7677-9886

Research Associate

Sylvia.Richards@morganstanley.com +44 20 7677-3354

Bottom line: mixed. Management sounded more confident on operational recovery

Giulia Faro

and logistics, but did not offer any more guidance for Q3 utilisation beyond the 60– Research Associate

70% range achieved in July. Q&A focused on feedstock, alternative shipping routes, Giulia.Faro@morganstanley.com +44 20 7425-7581

premium normalisation and Borouge 4; pretty much the entire available production Borouge PLC (BOROUGE.AD, BOROUGE DH)

can now be exported and logistics costs have started to come down, but earnings EEMEA - Chemicals | United Arab Emirates

visibility remains constrained by feedstock availability and geopolitics. Stock Rating Equal-weight

Industry View No Rating

# Feedstock availability / utilisation rates. July utilisation averaged 60–70%, with Price target AED 2.70

Shr price, close (Jul 30, 2026) AED 2.40

some days materially above 70%, and management indicated operating conditions 52-Week Range AED 2.68- 2.38

were improving. Management also mentioned that it is able to export its available Mkt cap, curr (mn) US$19,641

Net debt (12/26e) (mn)* US$2,494

production from alternative sources and that logistics costs have started to decline EV, curr (mn)* US$22,365

as they negotiate with suppliers. However, it would not extrapolate this into Q3 and * = GAAP or approximated based on GAAP

linked the rest-of-year outcome to feedstock availability and geopolitical conditions

around the Strait of Hormuz.

# Price/premia normalisation.