Record production and sales volumes have helped Borouge, the Abu Dhabi-based petrochemicals company into innovative and differentiated polyolefins solutions, achieve a 24 per cent year-on-year increase in net profit to $1.24 billion for the financial year 2024.
Borouge delivered record production of 5.2 million tonnes, with utilisation rates of 110 per cent for polyethylene and 98 per cent for polypropylene. Sales volume was at its highest-ever level of 5.3 million tonnes.
At 41 per cent EBITDA margin for FY24, Borouge continued to deliver superior profitability metrics to global industry peers. EBITDA climbed 14 per cent YoY to $2.48 billion, as revenue increased four per cent YoY to $6 billion.
Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, commented: “Borouge has generated substantial earnings growth in 2024, while maintaining strong profitability at a time when the wider global industry has faced challenges.
“This outstanding achievement places us in a prime position, financially and operationally, to cement our industry leadership. The Borouge 4 strategic expansion project will transform the scale of production by almost a third and enhance our innovation capabilities, driving sales growth in our major markets.
“We are also implementing a comprehensive digital and AI transformation programme, which is already enhancing productivity and will reimagine our operations in the coming years.”
Dividend
The company produced a full-year adjusted operating free cash flow of $2.31 billion, reflecting a 17 per cent year-on-year increase, driven by a high cash conversion rate of 93 per cent. The balance sheet remains solid, with the net debt/EBITDA ratio at 1.1 times as on 31 December 2024, bolstered by the repayment of $200 million in debt during the year.
With its strong cash generation and robust liquidity position, Borouge management reaffirmed its intention to distribute a final dividend of 7.94 fils per share in April 2025. This will bring the total full-year 2024 dividend payout to $1.3 billion.
“With Borouge delivering on all fronts, we are pleased to announce our intention to maintain a $1.3 billion dividend for the 2025 financial year, representing a 6.3 per cent current dividend yield. As we enter a period of accelerated growth, the company remains fully committed to generating attractive shareholder returns in the years ahead,” said Al Suwaidi.
Outlook
As for the outlook, Borouge expected average selling price of polyethylene and polypropylene to improve in the first quarter of 29025.
The company said it would continue to drive differentiation and achieve premia over product benchmarks through the cycle. Management guidance for premia over product benchmark remains at $200 per tonne for polyethylene and $140 per tonne for polypropylene, with average selling prices improving in Q1 2025 from Q4 2024 levels.
It will continue to grow in circular and durable value-added product segments with differentiated solutions. Preparations for the Borouge 3 planned maintenance are on schedule, with a 320 kt impact expected in Q2 2025.
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