Borouge shareholders have approved an interim cash dividend of $650 million, or 7.94 fils per share, for the first half of 2024 in its General Assembly Meeting on August 30.
This represents an annualised dividend yield of 6.3 percent (based on closing price on August 30).
Entitlement date (last date of purchase) has been set for 5th September and record date is 9th September. Dividend payment will be made within 30 days of the General Assembly Meeting. The share, trading at AED2.54 at 1300 UAE time, will go ex-dividend on 6th September.
Borouge’s strong H1 profit growth
The Abu Dhabi-based company, founded in 1998 as a joint venture of the Abu Dhabi National Oil Company (ADNOC) and Borealis of Austria, reported strong first half results for 2024.
For the first half of 2024, net profit was up 35 percent to $581 million with an industry-leading EBITDA margin of 42 percent.
Net profit was up 33 percent year-on-year to $308 million for the second quarter of 2024. Borouge recorded its highest-ever production volumes, leading to a 6 percent increase in revenue ($1.5 billion) and a 6 percent improvement in cost per tonne. Sales volumes increased 16 percent quarter-on-quarter.
Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, commented: “Borouge’s strong half-year dividend highlights the company’s excellent operational performance and strategic focus.
“Our peak levels of efficiency during the first half and rigorous cost management supported industry-leading EBITDA margins and strong cash generation. Growth initiatives such as Borouge 4, EU2, and our feasibility study for a planned speciality polyolefins complex in China, along with our ambitious AI programme, will significantly boost our production capacity, enhance productivity, safety, and sustainability, and unlock significant financial value.
“Our consistent robust performance enables us to maintain a substantial dividend and demonstrates our commitment to delivering long-term value to our shareholders.”
The company also reaffirmed its intention to pay a total of $1.3 billion dividend for full year 2024.
The Borouge 4 project, being built by Borouge on behalf of the project’s owners, ADNOC and Borealis, is now over 70 percent complete. Once completed, it will increase annual production capacity by 28 percent, contributing to approximately $1.9 billion in annual revenue.
The upgrade of the second ethylene unit (EU2), scheduled for completion in 2028, will add approximately $250 million in annual revenue.
Borouge also announced its intention to expand its global footprint through a strategic entry into China, in collaboration with Wanhua Chemical, with a feasibility study initiated for a planned plant in Fuzhou that would add 1.6 million tonnes per year to production capacity.
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