Friday 21 June 2024

Borouge set to distribute $650m dividends for FY 2022

ABU DHABI, March 13, 2023

Borouge, a leading petrochemical company that specialises in innovative and distinctive polyolefin solutions, has announced plans to distribute dividends worth $650 million for FY 2022 (equivalent to 7.9 fils per share).
Borouge is a joint venture between the Abu Dhabi National Oil Company (Adnoc) and  Austrian chemical giant Borealis.
The announcement was made at the Borouge's Annual General Meeting (AGM) held today (March 13) after the shareholders voted approving the board recommendation. This brings the total post-IPO dividend paid (June-December 2022) for the year to $975 million.
According to Borouge, the final dividend will be distributed to shareholders next month, and the company has committed to paying $1.3 billion in dividends for 2023. 
Since its successful listing, Borouge has demonstrated excellent performance, navigating market challenges and positioning itself for future growth to deliver competitive through-the-cycle shareholder returns.
Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Borouge, said: "Our performance in 2022 clearly reaffirms our core value proposition as a highly profitable business that is focused on high-growth markets with strong, long-term fundamentals, and industry-leading efficiency derived from a clear first-quartile cost position. Borouge’s highly differentiated and innovative products yield strong premia, enabling reliable margins and through-the-cycle dividend capacity."
"The company is well positioned for organic growth and the Board has mandated Borouge to explore international expansion opportunities. Further, our sustainability agenda underpins our commitment to decarbonisation and the circular economy," he stated.
Borouge 4, a new polyolefins complex being built by major shareholders ADNOC and Borealis, is progressing as planned and is set to begin operations in 2025. 
The new complex is expected to add 1.4 million tonnes of polyethylene capacity, increasing Borouge's total annual polyolefins production capacity to 6.4 million tonnes.
Borouge's Board of Directors has also authorized the company's executive management to explore growth opportunities through international expansion.
In February 2023, Borouge announced its financial results for the full year, reporting strong year-on-year growth in sales volumes, which drove revenue up 8.2 percent to $6.7 billion. 
Despite a challenging operating environment, the company's net profit for the year was $1.4 billion, in line with market expectations. Borouge has a strong balance sheet with a cash balance of over $1 billion at year-end, providing ample headroom for growth, stated Al Jaber.
Borouge also reported a 10 percent year-on-year increase in overall production capacity in 2022, with the successful ramp-up of its PP5 unit adding significant production capacity of 500 kilo tonnes per annum, bringing more differentiated grades into the production mix and supporting premium production.-TradeArabia News Service


More Energy, Oil & Gas Stories

calendarCalendar of Events