Brazilian petrochemical giant Braskem reported a consolidated recurring EBITDA of $150 million in Q3 2025. This represents a 104% increase compared to Q2, which was $74 million, though it remains 65% lower than in the same period last year, when it reached $432 million.

The company significantly narrowed its net loss to $1 million, showing a recovery from a $45 million loss in Q2 2025 and a $106 million loss in Q3 2024.

Net revenue reached $3,175 million, remaining largely flat (+1%) quarter-on-quarter but declining by 17% year-on-year. The net financial result was negative at $164 million, compared to negative $2 million in the previous quarter and negative $420 million a year ago.

In the home market, resin sales fell to 787,000 t, down 5% quarter-on-quarter and 9% year-on-year. The company attributed this to higher imports entering Brazil in July and August, alongside weaker PP demand. Export sales of resins remained stable at 229,000 t (+1% quarter-on-quarter) and showed growth of 9% year-on-year.

The average utilisation rate of petrochemical crackers dropped to 65%, down 9 percentage points from Q2 and 8 p.p. lower than in Q3 2024. This was primarily due to a scheduled 33-day maintenance shutdown at the Rio de Janeiro complex and a strategy to optimise production at naphtha-based plants. However, Braskem noted that positive effects from PE anti-dumping measures helped offset pressure on spreads.

The utilisation rate in the USA and Europe rose to 79%, up 5 p.p. quarter-on-quarter and 3 p.p. year-on-year, driven by the normalisation of operations and inventory replenishment in the USA. However, PP sales volumes dipped slightly to 495,000 t (-2% quarter-on-quarter, -1% year-on-year). While the US market recovered, sales in Europe were impacted by lower industrial activity due to seasonal factors.

Regarding the Mexican market, Braskem Idesa completed a major general maintenance shutdown at its petrochemical complex on 31 July. Consequently, PE sales volumes decreased to 146,000 t, down 6% quarter-on-quarter and significantly lower (-30%) compared to the same period last year due to reduced product availability.

The utilisation rate recovered slightly to 47% (+3 p.p. quarter-on-quarter) but remained 27 p.p. lower than in Q3 2024. A key development in the quarter was the start of ethane supplies from the new Puerto Quimica Mexico Terminal, which is expected to reduce the company's reliance on the Fast Track solution.

Earlier this year, OMV and the Abu Dhabi National Oil Company (ADNOC) announced they signed a landmark agreement to merge their respective polymer subsidiaries — Borealis and Borouge — into a single entity named Borouge Group International, creating what will become the world’s fourth-largest polyolefins producer.

The new company, headquartered in Vienna with regional headquarters in Abu Dhabi, will have a combined enterprise value exceeding $60 billion and an annual production capacity of over 13 million t. Both OMV and ADNOC will hold equal shareholdings of 46.94% in the group. OMV will contribute €1.6 billion in cash, adjusted for dividends paid before closing.

As part of the deal, Borouge Group International will acquire Nova Chemicals for $13.4 billion, expanding its footprint in North America and adding significant downstream and specialty capabilities.

OMV said the move marks a major milestone in its Strategy 2030 to shift from oil and gas towards chemicals and advanced materials, while ADNOC continues to pursue its diversification and integration ambitions.

The combination aims to unlock annual synergies of around $500 million, with 75% expected to be realised within the first three years after closing. Once Borouge 4 — the $7.5 billion expansion project in Ruwais — becomes operational, it will be contributed to the new company by end-2026. The project remains on track for completion by the end of 2025, further boosting the group’s production capacity and reinforcing its presence in Asia and the Middle East.

The merger will create a company second only to Sinopec, ExxonMobil, and Dow in terms of global polyolefin capacity, positioning Borouge Group International among the top four players worldwide.

What it means for the market

The transaction represents a transformative shift in the global polyolefins landscape, consolidating European, Middle Eastern, and North American production under a single entity. The integration of Borealis, Borouge, and Nova will significantly enhance vertical integration and improve feedstock flexibility, giving the new group access to low-cost ethane- and naphtha-based production.

For Europe, the merger may intensify competition among existing producers.

The transaction is expected to close in Q1 2026. Once completed, Borouge Group International will become a major integrated force in global polyolefins, with its scale, geographic diversity, and technology integration likely to reshape trade flows and competition across Europe, the Middle East, and beyond.