Borouge Seeks Approval For Share Buyback And Final Dividend Amid Strong Financial Results

Borouge Plc, a key player in the petrochemicals sector, plans to seek shareholder approval for a share buyback and final 2024 dividend during its Annual General Meeting (AGM) on 7th April. This meeting will be held both in-person and virtually. The company aims to repurchase up to 2.5 percent of its issued share capital.

The proposal follows Borouge's impressive financial performance in 2024, where net profit rose by 24 percent to $1.24 billion. The company also generated approximately $1.6 billion in free cash flow, driven by record production and sales volumes. This strong performance highlights Borouge's commitment to delivering superior returns to shareholders.

The proposed share buyback reflects Borouge's confidence in its growth prospects and dedication to enhancing shareholder value through various means. If approved, the buyback will occur via open market transactions according to ADX regulations. The number of shares repurchased will depend on market conditions and other factors.

Hazeem Sultan Al Suwaidi, CEO of Borouge, stated, "Borouge’s share buyback to repurchase shares at an attractive valuation underscores our commitment to enhancing shareholder value. With one of the highest dividend yields on the ADX, this buyback highlights our strong financial position and ability to seize value-accretive opportunities. Backed by a robust balance sheet and strong cash flow, we remain well-positioned to maximise returns while advancing the Borouge 4 expansion and other strategic initiatives."

In addition to the share buyback proposal, shareholders will vote on approving the final 2024 dividends of 7.94 fils per share. These dividends are set for distribution on 28th April 2025, bringing the total dividend payout for 2024 to $1.3 billion or 15.88 fils per share.

The Board of Directors will oversee the share buyback process if it receives approval. They may modify or discontinue it at any time, with a maximum limit of 2.5 percent for repurchase.

Borouge is strategically positioned both financially and operationally to solidify its standing among industry leaders and accelerate its growth ambitions further.

With inputs from WAM