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Borouge, a leading petrochemical company focused on innovative and unique polyolefin solutions, has announced plans to pay a dividend worth $650 million (or 7.9 fils per share) for fiscal year 2022.
Borouge is a joint venture between Abu Dhabi National Oil Company (Adnoc) and Austrian chemical giant Borealis.
The announcement was made at Borouge’s Annual General Meeting (AGM) today (March 13) after shareholders voted to approve the Board’s recommendations. This brings the total post-IPO dividend paid for the full year (June-December 2022) to $975 million.
The final dividend will be paid to shareholders next month, according to Borouge, which has committed to paying $1.3 billion in dividends in 2023.
Since its successful listing, Borouge has demonstrated excellent performance, has responded to market challenges and is well positioned for future growth to deliver competitive full-cycle shareholder returns.
Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technologies and Chairman of Borouge, said: “Our 2022 results clearly reaffirm our core value proposition of being a highly profitable business focused on high-growth markets with strong Long-term fundamentals, coupled with industry-leading efficiencies from a clear 1-quartile cost position. Borouge’s highly differentiated and innovative products generate a strong premium, delivering solid margins and dividend capacity through the cycle.”
“The company is well-positioned for organic growth and the board has empowered Borouge to explore opportunities for international expansion. Furthermore, our sustainability agenda underpins our commitment to decarbonization and the circular economy,” he said.
Borouge 4, a new polyolefins complex under construction by major shareholders ADNOC and Borealis, is on schedule and will begin operations in 2025.
The new complex is expected to add 1.4 million tonnes of polyethylene capacity, increasing Borouge’s total polyolefins capacity to 6.4 million tonnes per annum.
The Borouge Board also empowers the company’s executive management to explore growth opportunities through international expansion.
In February 2023, Borouge announced its full-year financial results, showing strong year-over-year sales growth, with revenue up 8.2% to $6.7 billion.
Despite the challenging operating environment, the company’s full-year net profit was US$1.4 billion, in line with market expectations. Al Jaber said Borouge has a strong balance sheet, with a year-end cash balance of more than $1 billion, providing ample room for growth.
Borouge also reported overall capacity growth of 10% year-on-year in 2022, with the successful commissioning of its PP5 unit adding a significant capacity increase of 500 kg per annum, bringing more differentiated grades to the production mix and supporting quality production.-TradeArabia News Service
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