Borouge to Pay $650 Million in Dividend to Shareholders

Shareholders of Borouge Plc, a leading petrochemicals company that provides innovative and differentiated polyolefins solutions, has approved in the General Assembly Meeting (GAM) held on August 30 of its half-year 2024 interim cash dividend of $650 million, representing an annualised dividend yield of 6.3%.

At the meeting, the company also reaffirmed its intention to pay a total of $1.3 billion dividend on full year 2024, reflecting Borouge’s commitment to delivering strong shareholder returns following exceptional growth in first-half earnings, the company disclosed in a regulatory filing with ADX on Monday.

The first half of 2024 marked a period of exceptional progress and growth for Borouge, underpinned by strategic initiatives both domestically and internationally. In the UAE, the advancement of key projects such as Borouge 4, and globally, the development of a feasibility study for a speciality polyolefins complex in China, will significantly expand its global footprint.

Borouge’s commitment to premium product offerings and its focus on leveraging cutting-edge technology and innovation continue to drive robust sales performance, reinforcing the company’s market leading position.

Excellent Performance

Borouge CEO Hazeem Sultan Al Suwaidi said that strong half-year dividend highlights the company’s excellent operational performance and strategic focus. The company’s peak levels of efficiency during the first half and rigorous cost management supported industry-leading EBITDA margins and strong cash generation.

“Growth initiatives such as Borouge 4, ethylene unit (EU2), and our feasibility study for a planned speciality polyolefins complex in China, along with our ambitious AI programme, will significantly boost our production capacity, enhance productivity, safety, and sustainability, and unlock significant financial value. Our consistent robust performance enables us to maintain a substantial dividend and demonstrates our commitment to delivering long-term value to our shareholders,” Al Suwaidi added.

In the first half of 2024, Borouge achieved a 35% increase in net profit reaching $581 million with an industry-leading 42% EBITDA margin, underscoring the company’s ability to optimise costs and maintain a strong price premium in global markets, even under challenging conditions.

The Borouge 4 project, being built by Borouge on behalf of the project’s owners, ADNOC and Borealis, is now over 70% complete. Once completed, it will increase annual production capacity by 28%, contributing to approximately $1.9 billion in annual revenue.

Simultaneously, the upgrade of the second EU2, scheduled for completion in 2028, will add approximately $250 million in annual revenue. Additionally, Borouge is expanding its global footprint through a strategic entry into China, with a feasibility study initiated for a planned plant in Fuzhou that would add 1.6 million tonnes per year to production capacity.

The international growth project, which is being pursued in collaboration with Chinese partner Wanhua Chemical, will reinforce Borouge’s market position and increase sales of its differentiated products in one of the world’s most dynamic markets.