Borouge Shareholders Approve $1.3 Billion Dividend For 2023

Borouge Plc, a premier petrochemical company known for its innovative polyolefins solutions, recently announced at its Annual General Meeting (AGM) the approval of a substantial $650 million final cash dividend for 2023, translating to 7.94 fils per share. This move underscores the company's dedication to enhancing shareholder value, with plans to distribute a total dividend of $1.3 billion for the year 2024 already in motion.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of Borouge, highlighted the company's exceptional performance in 2023, surpassing industry counterparts through operational and financial resilience. This success has solidified Borouge's status as one of the globe's most profitable and inventive polyolefin producers. The company is on a fast track for growth both domestically and internationally.

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At the heart of its expansion strategy is Borouge 4, poised to significantly elevate annual revenue by $1.5 to $1.9 billion upon reaching full production capacity. This strategic project will augment Borouge's production capacity by 28%, transforming its Al Ruwais site into the largest integrated single-site polyolefin complex worldwide.

Additionally, Dr. Al Jaber announced the advancement of a new expansion project involving a second ethylene unit (EU2), aiming to boost total olefins and polyolefins production by 230,000 tonnes post-completion in 2028. This initiative is expected to contribute an additional $220 to $250 million to Borouge's annual revenue.

On the international front, Borouge is exploring growth opportunities in the Asia Pacific region, with one such opportunity already progressing to the feasibility stage. Dr. Al Jaber expressed confidence in Borouge's continued success and growth, supported by a robust business model and a focus on innovation and AI technology.

Hazeem Sultan Al Suwaidi, CEO of Borouge, reflected on the company's strong financial performance in 2023, attributing it to operational resilience and commercial excellence amidst challenging market conditions. The company's Value Enhancement Programme played a crucial role in optimizing revenues and streamlining costs, contributing significantly to a record $1.0 billion net profit in 2023.

Borouge achieved record sales volumes of 5.1 million tonnes in 2023, thanks to exceptional production and industry-leading asset utilisation rates. These efforts resulted in an EBITDA margin of 38%, positioning Borouge ahead of its regional and international peers.

The company's commitment to digitalisation and AI as key drivers of innovation and efficiency was also highlighted. Initiatives in these areas have already delivered $58 million in value in 2023, with significant milestones expected to generate around $280 million in value in the coming years.

Borouge's Innovation Centre introduced eight new products in 2023, including a globally recognised solution for gas pipes known for its superior safety and reliability standards. This focus on sustainable growth and innovation ensures that shareholders can anticipate exceptional recurring dividends moving forward.

In summary, Borouge's strategic initiatives and commitment to innovation are set to propel the company towards sustained growth and profitability, reinforcing its position as a leader in the global petrochemical industry.

With inputs from WAM