Borouge Plc, a leading petrochemicals company, recently confirmed shareholder approval of its half-year 2024 interim cash dividend of $650 million, representing 7.94 fils per share. This dividend, with an annualized yield of 6.3 percent, was approved at the General Assembly Meeting on August 30. The company also reaffirmed its intention to pay a total of $1.3 billion in dividends for full year 2024, reflecting its commitment to delivering strong shareholder returns following exceptional growth in first-half earnings.
The first half of 2024 showed significant progress and growth for Borouge, driven by strategic initiatives both locally and globally. Projects such as Borouge 4 in the UAE and a feasibility study for a specialty polyolefins complex in China will expand the company’s global footprint. Hazeem Sultan Al Suwaidi, Borouge’s CEO, emphasized the company’s operational performance and strategic focus, highlighting efficiency, cost management, and strong cash generation as key factors contributing to industry-leading Ebitda margins.
Borouge reported a 35 percent increase in net profit in the first half of 2024, reaching $581 million with a 42 percent Ebitda margin. The company’s ability to optimize costs and maintain a strong price premium in global markets, even under challenging conditions, has been crucial to its success. The ongoing Borouge 4 project, expected to increase annual production capacity by 28 percent upon completion, will contribute approximately $1.9 billion in annual revenue.
In addition to Borouge 4, the upgrade of the second ethylene unit (EU2), scheduled for completion in 2028, is expected to add approximately $250 million in annual revenue. The company is also expanding its global footprint through a strategic entry into China, as a feasibility study has been initiated for a planned plant in Fuzhou, which would add 1.6 million tonnes per year to production capacity. This international growth project, in collaboration with Chinese partner Wanhua Chemical, aims to strengthen Borouge’s market position and increase sales of its differentiated products in one of the world’s most dynamic markets.
Borouge’s growth initiatives, including Borouge 4, EU2, and the feasibility study in China, as well as the ambitious AI program, are expected to significantly boost production capacity, enhance productivity, safety, and sustainability, while unlocking significant financial value. The company’s consistent robust performance enables it to maintain a substantial dividend and demonstrates its commitment to delivering long-term value to shareholders. With strong earnings and a focus on strategic projects, Borouge is well-positioned for continued success and growth in the petrochemical industry.
In conclusion, Borouge Plc’s recent shareholder approval of a half-year dividend and commitment to delivering strong shareholder returns demonstrate the company’s financial strength and strategic focus. With significant growth initiatives, including key projects in the UAE and China, Borouge is poised to expand its global footprint and strengthen its market position. By focusing on efficiency, cost management, and innovation, Borouge continues to deliver strong financial results and value to its shareholders while positioning itself for long-term success in the petrochemical industry.
