Borouge announces increased dividend of 16.2 fils per share from 2025
Borouge Plc shareholders have approved a final 2024 dividend and 2.5 per cent share buyback programme at their Annual General Meeting (AGM).
Borouge Group International, a $60 billion global polyolefins leader, will be formed after the proposed combination of Borouge and Borealis, and the acquisition of Nova Chemicals. This 'has been designed to deliver consistently strong dividends and significant near-term growth, and will have a production capacity of 13.6 million tonnes – nearly tripling Borouge's current capacity,' a statement said.
Borouge shareholders approved a $650 million (7.94 fils per share) final dividend for 2024 at the AGM, bringing the total annual payout to $1.3 billion (15.88 fils per share). The last day for shareholders to be eligible for the dividend is April 15, 2025, with distribution on April 28, 2025.
In addition, Adnoc and OMV, as the main shareholders in Borouge Group International, have announced their intention, post closing of the transaction, to offer an attractive estimated total dividend of $2.2 billion, equivalent to a minimum of 16.2 fils per share dividend, annually from 2026 to 2030.
The AGM also approved a share buyback of up to 2.5 per cent of outstanding shares via open-market transactions, subject to market conditions and regulatory approvals.
With the creation of Borouge Group International, expected in the first quarter of 2026, investors in the new entity are expected to benefit from future earnings growth that is set to translate directly into higher dividend payments. This will be supported by the company's intention to a 90 per cent net income payout ratio through to 2030. The dividend will be supported by a strong balance sheet, resilient profitability, substantial free cash flow generation and the backing of its majority shareholders, global energy leaders Adnoc and OMV.
Furthermore, anticipated inclusion in MSCI indices could generate up to $400 million of index demand, further enhancing stock liquidity.
Cash earnings per share at Borouge Group International are expected to grow up to 30 per cent over the next three to five years, with earnings before interest, taxes, depreciation and amortisation (Ebitda) projected to rise to $7 billion.
Importantly, the majority of near-term expansion projects have already been funded and are nearing completion. Notably, the Borouge 4 mega project would be transferred to Borouge Group International at cost, unlocking substantial value for shareholders. Once fully operational, the plant will add 1.4 million tonnes per annum of additional capacity and is expected to contribute approximately $900 million in annual Ebitda through a typical business cycle.
In recent years, the three entities have achieved $1 billion of cost savings and profitability enhancements, with $607 million coming from Borouge. Looking ahead, Borouge Group International is expected to deliver around $500 million synergies per annum, with 75 per cent to be realised within the first three years. The new entity is also targeting significant value creation through the synchronised deployment of growth capital expenditure.
Borouge Group International will have enhanced access to major global growth markets, capitalising on strong long-term demand trends. Its diversified geographic footprint and broadened product suite will strengthen resilience and reduce exposure to regional market fluctuations.
Through the new entity, production capacity is set to increase almost threefold — from 5 million tonnes to 13.6 million tonnes per annum — enabling the production of a wider range of premium polyolefin products. Proprietary technologies will underpin the delivery of a high margin, differentiated portfolio. The combined platform will also consolidate and optimise sales, distribution, and innovation across key regions, enhancing market reach and efficiency.
Additionally, Borouge Group International will benefit from relative feedstock cost advantages, particularly in the UAE, United States, and Canada.
'The creation of Borouge Group International is being pursued at a low point in the polyolefin business cycle and will unlock value creation opportunities in a sector that serves key growth industries including energy and infrastructure, healthcare and agriculture,' a statement said.
Dr. Sultan Al Jaber, Chairman of Borouge, commented: 'As we embark on a new era of transformative growth, Borouge Group International will be a global petrochemical powerhouse — combining scale, resilience and innovation. In 2025 Borouge intends to increase its dividend to at least 16.2 fils per share, which will serve as the minimum payout for Borouge Group International through to 2030. At the current Borouge share price, this would give investors a 40 per cent minimum cumulative dividend return from 2025 to 2030, the highest in the UAE. Simply put, Adnoc and OMV are building a bigger, stronger, growth-orientated company that is focussed on delivering superior total shareholder returns to our investors.'
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