The company’s 2024 financial results show resilience with $1.22 billion net earnings, a 24 percent YoY increase
The annual dividend for Abu Dhabi’s petrochemical company Borouge has reached a 6.7 percent based on the closing price as of March 7. This achievement not only provides strong returns for investors but also reinforces the company’s appealing dividend profile.
Borouge’s financial outcomes for 2024 highlight the company’s resilience and profitability, showcasing net earnings of AED4.5 billion ($1.22 billion), reflecting a 24 percent increase year-on-year.
The company also reported an exceptional EBITDA margin of 41 percent, further solidifying its status as one of the most efficient and profitable entities in the petrochemicals sector.
Expected cash dividend approval
Shareholders of Borouge are anticipated to approve a cash dividend of AED2.4 billion ($653.5 million) for the second half of 2024 during the upcoming Annual General Meeting (AGM) scheduled for April 7, 2025. This final payment will elevate Borouge’s total dividends for the year to AED4.8 billion ($1.3 billion), reinforcing its status as an attractive investment opportunity within the region.
Investors looking to qualify for the final dividend must hold Borouge shares by April 15, 2025, with distributions planned for April 28, 2025.
Hazeem Sultan Al Suwaidi, Borouge’s CEO, stated, “This is an exciting time for Borouge shareholders, as the company continues to deliver strong dividends, underscoring our commitment to driving value for our shareholders. With a solid business model and continuous innovation, Borouge remains a strong contender for investors looking for value opportunities.”
Read more: Abu Dhabi’s Borouge delivers 700,000 tons in first year under Etihad Rail agreement
Growth trajectory post-merger
In addition to its robust dividend profile, Borouge’s growth trajectory is set to accelerate following the recent merger of Borouge and OMV’s Borealis, forming Borouge Group International, along with the acquisition of NOVA Chemicals. This consolidation will establish the world’s fourth-largest polyolefins company, valued at over AED220 billion ($59.9 billion), significantly enhancing Borouge’s global standing.
The newly established Borouge Group International is expected to enjoy a higher dividend payout, expanded market access, advanced technological capabilities, and complementary product lines.
With commercial and manufacturing operations across North America, Europe, Asia, the Middle East, and Africa, Borouge Group International’s presence in the global petrochemicals industry is poised to strengthen, paving the way for further growth and value creation.
