Borouge Shareholders Greenlight $650 Million Interim Dividend Amidst Earnings Growth

Borouge Plc, a prominent petrochemicals company known for its innovative polyolefins solutions, has confirmed shareholder approval of its half-year 2024 interim cash dividend. The General Assembly Meeting (GAM) on 30th August approved a dividend of $650 million, or 7.94 fils per share, representing an annualised yield of 6.3%. This decision reflects Borouge's commitment to delivering strong shareholder returns.

In the first half of 2024, Borouge reported a significant net profit increase of 35%, reaching $581 million. The company maintained an industry-leading EBITDA margin of 42%, showcasing its ability to optimise costs and sustain a strong price premium in global markets despite challenging conditions.

The first half of 2024 was marked by exceptional progress for Borouge, driven by strategic initiatives both locally and internationally. In the UAE, key projects like Borouge 4 advanced significantly. Globally, the company initiated a feasibility study for a speciality polyolefins complex in China, aiming to expand its global footprint.

Chief Executive Officer Hazeem Sultan Al Suwaidi stated, "Borouge's strong half-year dividend highlights the company's excellent operational performance and strategic focus. Our peak levels of efficiency during the first half and rigorous cost management supported industry-leading EBITDA margins and strong cash generation."

The Borouge 4 project is over 70% complete and will increase annual production capacity by 28% once finished. This project is expected to contribute approximately $1.9 billion in annual revenue. Additionally, the upgrade of the second ethylene unit (EU2), set for completion in 2028, will add around $250 million in annual revenue.

Borouge is also expanding its presence in China through a strategic partnership with Wanhua Chemical. A feasibility study has been initiated for a planned plant in Fuzhou that would add 1.6 million tonnes per year to production capacity. This international growth project aims to reinforce Borouge's market position and boost sales of its differentiated products in one of the world's most dynamic markets.

Commitment to Shareholders

Borouge reaffirmed its intention to pay a total dividend of $1.3 billion for the full year 2024 during the GAM meeting. This commitment follows exceptional growth in first-half earnings and underscores Borouge's dedication to delivering long-term value to shareholders.

Hazeem Sultan Al Suwaidi further commented on future growth initiatives: "Growth initiatives such as Borouge 4, 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."

Borouge's consistent robust performance enables it to maintain substantial dividends while demonstrating its commitment to long-term shareholder value. The company's strategic focus on efficiency and cost management supports industry-leading EBITDA margins and strong cash generation.

The advancement of key projects like Borouge 4 domestically and the development of a feasibility study for a speciality polyolefins complex in China globally will significantly expand Borouge's global footprint.

The international growth project pursued with Chinese partner Wanhua Chemical will strengthen Borouge's market position and increase sales in dynamic markets like China.

With inputs from WAM