Borouge proposes 25% share buyback and final 2024 dividend of $1.3 billion

Khaleej Times

17-03-2025

Borouge Plc, a leading UAE petrochemicals company, on Monday proposed to seek shareholder approval for a share buyback and final 2024 dividend at its in-person and virtual annual general meeting (AGM) on April 7, the company announced on Monday.
Borouge proposes to purchase up to 2.5 per cent of its issued share capital. The proposal comes after Borouge delivered outstanding 2024 financial results, achieving a 24 per cent year-on-year increase in net profit to $1.24 billion, superior free cash flow generation of c. $1.6 billion, driven by record production and sales volumes.
Fourth-quarter net profit increased 1 per cent quarter on quarter and 15 per cent year on year to $331 million, with revenue reaching $1.62 billion, up 1 per cent quarter on quarter and 8 per cent year on year. Sales volumes rose 8 per cent year on year and 3 per cent quarter on quarter, with total production flat year on year at 1.3 million tonnes.
Adjusted Ebitda rose 8.2 per cent year on year and 0.6 per cent quarter on quarter to $650 million. Borouge reinforced its industry leadership by delivering a healthy adjusted Ebitda margin of 40 per cent, supported by a focus on continued operational efficiencies and cost optimisation. Cash conversion was strong at 88 per cent, with a healthy adjusted operating free cash flow of $572 million, up 9 per cent year on year.
​Full-year 2024 net profit increased 24 per cent to $1.24 billion, exceeding analyst expectations, and adjusted Ebitda increased 14 per cent to $2.48 billion. Revenue rose 4 per cent to $6 billion, while total costs improved by 2.1 per cent to $4.1 billion.
The high-value infrastructure solutions segment represented 40 per cent of total sales volume in 2024, underscoring Borouge's strong positioning in this key high-value segment. The high-growth market of Asia Pacific remained the top destination for Borouge's products, accounting for 63 per cent of total sales volumes for both the quarter and the full year.
'The proposed share buyback underscores the company's confidence in its long-term growth prospects and commitment to delivering superior returns to its shareholders through multiple avenues and underpinned by its exceptional operational and financial performance. Upon shareholder and regulatory approvals, the share buyback would be conducted through open market transactions in accordance with ADX regulations, with the quantity of shares repurchased dependent on market conditions and other factors,' a statement said.
Hazeem Sultan Al Suwaidi, CEO of Borouge, said: 'Borouge's share buyback to repurchase shares at an attractive valuation, underscores our commitment to enhancing shareholder value. With one of the highest dividend yields on the ADX, this buyback highlights our strong financial position and ability to seize value-accretive opportunities. Backed by a robust balance sheet and strong cash flow, we remain well-positioned to maximise returns while advancing the Borouge 4 expansion and other strategic initiatives.'
The share buyback, which, if approved will be overseen and managed by the Board of Directors, may be modified, or discontinued at any time, with the 2.5 per cent shares constituting the approved ceiling for the repurchase.
In addition to the share buyback proposal, shareholders will also vote to approve the final 2024 dividends of 7.94 fils per share which will be distributed on 28 April 2025, bringing its total 2024 dividend payout to $1.3 billion equivalent to 15.88 fils per share with an attractive annual dividend yield.
'Borouge is in a prime position, financially and operationally, to cement its role amongst the industry's leading companies and accelerate its growth ambitions,' the statmeent said.