Borouge annual dividend yield at 6.7%, offering strong investor returns

The annual dividend for Borouge, a leading petrochemicals company, reached 6.7 per cent based on the closing price on 7th March, offering strong investor returns and reinforcing the company’s attractive dividend profile.

Borouge’s financial results for 2024 underline the company’s resilience and profitability, with net earnings of Dhs4.5 billion ($1.24 billion), marking a 24 per cent year-on-year increase.

The company also reported an industry-leading EBITDA margin of 41 percent, further cementing its reputation as one of the most efficient and profitable players in the petrochemicals sector.

Shareholders of Borouge are expected to approve an Dhs2.4 billion ($650 million) cash dividend for the second half of 2024 at the company’s upcoming Annual General Meeting (AGM) on 7th April 2025. This final payment will bring Borouge’s total dividends for the year to Dhs4.8 billion ($1.3 billion), reinforcing its position as an attractive investment opportunity in the region.

Investors seeking eligibility for the final dividend must hold Borouge shares by 15th April 2025, with payments set for distribution on 28th April 2025.

Hazeem Sultan Al Suwaidi, Borouge CEO, said, “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.”

Beyond its strong dividend profile, Borouge’s growth trajectory is poised to accelerate following the recently announced merger of Borouge and OMV’s Borealis to create Borouge Group International and the acquisition of NOVA Chemicals. This consolidation will create the world’s fourth-largest polyolefins company, valued at Dhs220+ billion ($60 billion), significantly enhancing Borouge’s global profile.

The newly formed Borouge Group International is expected to benefit from a higher dividend payout, expanded market access, advanced technological capabilities, and complementary product lines.

With commercial and manufacturing operations spanning North America, Europe, Asia, the Middle East, and Africa, Borouge Group International presence in the global petrochemicals industry is set to strengthen, offering further opportunities for growth and value creation.

WAM