Borouge Shareholders Approve $660 Million Interim Dividend Following Strong H1 Performance

Borouge Plc has announced that its shareholders have approved an interim dividend of $660 million, translating to 8.1 fils per share. This decision was made during the General Assembly Meeting on 29th August, reflecting a strong performance in the first half of the year. The company attributes this success to effective cost management, strategic inventory sales, and favourable pricing.

Since its IPO in June 2022, Borouge has distributed dividends amounting to $4.24 billion, offering a total shareholder return of 30%. The company plans to increase its total dividend to 16.2 fils per share for 2025, up from 15.88 fils in 2024. The final payment of 8.1 fils per share is expected in the first quarter of 2026.

The Borouge 4 mega project is progressing well, with over 90% completion anticipated by the end of 2026. This project will enhance the company's annual capacity by adding 1.4 million tonnes, thereby increasing shareholder value significantly. Borouge's strategic expansion continues to be a priority as it aims for sustained growth.

The establishment of Borouge Group International is set for completion in Q1 2026, with regulatory filings and integration planning already underway. This new entity is projected to become a $60 billion global leader in petrochemicals and the fourth-largest polyolefins company worldwide.

Upon finalising the Borouge Group International transaction, the company intends to maintain an annual minimum dividend of 16.2 fils per share until at least 2030, pending necessary approvals. This commitment underscores Borouge's dedication to delivering consistent returns to its shareholders.

Borouge's CEO, Hazeem Sultan Al Suwaidi, stated: "Our consistent track record of strong shareholder returns is underpinned by robust operations, disciplined cost management, and sustained pricing margins. As we look ahead to the proposed formation of Borouge Group International in Q1 2026, our focus remains on delivering resilient performance and one of the highest dividend returns on the ADX."

The company's net profit reached $474 million due to healthy volumes, pricing premiums, and disciplined cost control measures. Additionally, Borouge has shown confidence in its future by repurchasing 141 million shares through its buyback programme approved at April's Annual General Meeting.

With inputs from WAM