Borouge Plc, a prominent petrochemicals firm known for its innovative and distinctive polyolefins solutions, has secured shareholder endorsement at its General Assembly Meeting on August 30 for the interim cash dividend of $650 million for the first half of 2024, equating to 7.94 fils per share and an annualized dividend yield of 6.3 percent. During the assembly, the company reiterated its plan to distribute a total dividend of $1.3 billion for the full year 2024, underscoring Borouge’s dedication to providing robust returns to its shareholders, following a remarkable surge in earnings during the first half. The initial six months of 2024 were notably successful for Borouge, driven by strategic advancements both within the UAE and internationally. Key developments included the progress on the Borouge 4 project in the UAE and the initiation of a feasibility study for a specialty polyolefins complex in China, which are set to expand Borouge’s global presence significantly.
Hazeem Sultan Al Suwaidi, the CEO of Borouge, expressed, “The robust half-year dividend reflects Borouge’s outstanding operational efficiency and strategic alignment. Our peak operational efficiencies and stringent cost controls during the first half supported our leading Ebitda margins and robust cash flow.” He further highlighted the strategic initiatives like Borouge 4, EU2, and the feasibility study for a specialty polyolefins complex in China, along with an ambitious AI program, which are poised to enhance production capacity, productivity, safety, and sustainability, unlocking substantial financial benefits. Al Suwaidi emphasized the company’s consistent strong performance, enabling the maintenance of a significant dividend and demonstrating its commitment to delivering long-term value to shareholders.
In the first half of 2024, Borouge reported a 35 percent rise in net profit, reaching $581 million, with an industry-leading Ebitda margin of 42 percent, highlighting the company’s capability to optimize costs and sustain a strong price advantage in global markets, even amid challenging circumstances. The Borouge 4 project, undertaken by Borouge for the project owners, Adnoc and Borealis, is now more than 70 percent complete. Upon completion, it will boost annual production capacity by 28 percent, contributing to an estimated $1.9 billion in annual revenue. Concurrently, the upgrade of the second ethylene unit (EU2), slated for completion in 2028, is expected to add approximately $250 million in annual revenue. Moreover, Borouge is extending its global reach through a strategic venture into China, with a feasibility study underway for a planned facility in Fuzhou that would augment production capacity by 1.6 million tonnes per year. This international growth initiative, pursued in partnership with Chinese firm Wanhua Chemical, aims to strengthen Borouge’s market standing and enhance sales of its differentiated products in one of the world’s most vibrant markets.
