Borouge OKs final dividend of $650 million for 2022

ABU DHABI / WAM

Borouge, a leading petrochemical company that specialises in innovative and distinctive polyolefin solutions, held its inaugural Annual General Meeting (AGM) on Monday. Shareholders voted to approve a final dividend of $650 million for the fiscal year 2022, approximately 7.9 fils per share, which brings the total post-IPO dividend paid (June-December 2022) for the year to $975 million.
The final dividend will be distributed to shareholders in April 2023, and the company has committed to
paying $1.3 billion in dividends for 2023. 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 focussed 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.”
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.
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. The company continues to operate comfortably within the top quartile of the global cost curve.
Borouge’s high impact value enhancement programme, focused on driving efficiencies within variable costs, fixed costs, and revenue enhancement, is expected to deliver a positive EBITDA impact of $400 million in 2023. Management expects to sustain a 15 percent positive EBITDA impact from 2024 onwards, versus the 2022 baseline.