Borouge Announces Annual Dividend Yield Of 6.7%, Highlighting Strong Investor Returns And Financial Performance

Borouge, a prominent player in the petrochemicals industry, reported an annual dividend yield of 6.7% based on its closing price on 7th March. This highlights the company's strong investor returns and appealing dividend profile. The financial results for 2024 demonstrate Borouge's resilience and profitability, with net earnings reaching AED4.5 billion ($1.24 billion), reflecting a 24% increase from the previous year.

Shareholders are anticipated to approve a cash dividend of AED2.4 billion ($650 million) for the latter half of 2024 at Borouge's Annual General Meeting (AGM) scheduled for 7th April 2025. This final payment will elevate the total dividends for the year to AED4.8 billion ($1.3 billion), solidifying Borouge's status as an attractive investment in the region.

The merger between Borouge and OMV’s Borealis, forming Borouge Group International, along with acquiring NOVA Chemicals, is set to accelerate growth. This consolidation will establish the world's fourth-largest polyolefins company, valued at over AED220 billion ($60 billion), significantly boosting Borouge’s global standing.

The newly established Borouge Group International is poised to gain from increased dividend payouts, broader market access, advanced technological capabilities, and complementary product lines. Its commercial and manufacturing operations span North America, Europe, Asia, the Middle East, and Africa.

Investors aiming for eligibility for the final dividend must hold shares by 15th April 2025, with payments scheduled for distribution on 28th April 2025. This timeline ensures that shareholders can benefit from Borouge's robust financial performance and strategic initiatives.

Borouge CEO Hazeem Sultan Al Suwaidi stated, "This is an exciting time for Borouge shareholders, as the company continues to deliver strong dividends, underscoring our commitment to driving value for our shareholders. With a solid business model and continuous innovation, Borouge remains a strong contender for investors looking for value opportunities."

Beyond its impressive dividend profile, Borouge's industry-leading EBITDA margin of 41% further cements its reputation as one of the most efficient and profitable entities in the petrochemicals sector.

Borouge Group International's presence in the global petrochemicals industry is set to strengthen further, offering additional opportunities for growth and value creation across various regions.

With inputs from WAM