Borouge, a leading Abu Dhabi-based petrochemicals company, announced the approval of its half-year interim cash dividend of $650 million, or 7.94 fils per share, representing an annualized dividend yield of 6.3 percent. The company’s shareholders approved the interim dividend during the general assembly meeting on August 30.
At the meeting, Borouge also reaffirmed its intention to pay a total of $1.3 billion dividend this year. This target reflects Borouge’s commitment to delivering strong shareholder returns following exceptional growth in first-half earnings.
Strategic initiatives boost earnings
Borouge saw exceptional progress and growth during the first half of 2024 with the launch of strategic initiatives both domestically and internationally.
In the UAE, the company advanced on key projects such as Borouge 4. Globally, it developed a feasibility study for a specialty polyolefins complex in China which will significantly expand the company’s global footprint.
“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,” stated Hazeem Sultan Al Suwaidi, CEO of Borouge.
Al Suwaidi added that the company’s projects in addition to its AI program will significantly boost production capacity. In addition, they will 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,” he added.
Read: UAE oil imports to Japan reach 31.07 million barrels in July 2024, 49.1 percent of total
Net profits rise to $581 million
During the first half of 2024, Borouge reported a 35 percent increase in net profit to $581 million. In addition, it marked an industry-leading 42 percent EBITDA margin. The company’s earnings underscore the company’s ability to optimize costs and maintain a strong price premium in global markets, even under challenging conditions.
The Borouge 4 project is now over 70 percent complete. Once complete, it will increase annual production capacity by 28 percent, contributing to approximately $1.9 billion in annual revenue.
In addition, the upgrade of the second ethylene unit (EU2) will add approximately $250 million in annual revenue. Moreover, Borouge is expanding its global footprint through a strategic entry into China with a feasibility study initiated for a planned plant in Fuzhou. The plant would add 1.6 million tonnes per year to production capacity.
The international growth project will reinforce Borouge’s market position. Moreover, it will increase sales of its differentiated products in one of the world’s most dynamic markets.
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