ADNOC venture Borouge nets $281m in Q1-2025 profit
Borouge, which is going through a major corporate makeover, maintained its profit margins at 20% over the last two quarters.
Up for major changes
The latest numbers set up the 'foundation' for the proposed combining of Borouge and the other petrochemicals entity Borealis. Plus, there is acquisition of US-based Nova Chemicals to create Borouge Group International, which will be a '$60 billion global petrochemicals leader'.
"The new entity has been designed to deliver consistently strong dividends and significant near-term growth, with the transactions scheduled for completion in Q1-2026," said a statement.
Higher dividend
ADNOC and the other major shareholder in Borouge, OMV, are creating Borouge Group International. Once all the pieces are in place for the transformation, investors will get an 'attractive estimated total dividend of $2.2 billion'.
That's equal to a minimum of 16.2 fils per share dividend from 2026 to 2030, which is a 6.3% annual dividend. (This is based on an intended 90% net income pay-out ratio. Borouge and Borouge Group International dividends represent a 38% cumulative dividend return through to 2030.)
On the Q1-25 numbers, "Borouge is firmly positioned on an accelerated growth trajectory having demonstrated remarkable resilience and operational excellence over the past couple of years," said Hazeem Sultan Al Suwaidi, CEO of the ADNOC joint venture.
"This gives us strong confidence as we enter a new phase of transformational growth with Borouge Group International.
"A core focus of our strategy remains on delivering superior value to our shareholders, demonstrated by Borouge's intention to further increase our dividend to 16.2 fils per share for 2025 - which will also serve as the intended minimum share payout up to 2030 under Borouge Group International.'
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