The final dividend will be distributed to shareholders in April. Image Credit: Supplied/Gulf News Archives

Abu Dhabi: Borouge shareholders on Monday voted to approve a final dividend of $650 million for the fiscal year 2022 at approximately 7.9 fils per share, bringing the total post-IPO dividend paid (June-December 2022) for the year to $975 million.

The final dividend will be distributed to shareholders in April. Overall, the company has committed to paying $1.3 billion in dividends for 2023.

In February, Borouge – a petrochemical firm that specialises in polyolefin solutions – announced its financial results for the full year, reporting strong year-on-year growth in sales volumes, which drove revenue up 8.2 per cent to $6.7 billion.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Borouge, said: “Our performance in 2022 clearly reaffirms our core value proposition as a highly profitable business that is focused on high-growth markets with strong, long-term fundamentals, and industry-leading efficiency derived from a clear first-quartile cost position. Borouge’s highly differentiated and innovative products yield strong premia, enabling reliable margins and through-the-cycle dividend capacity. The company is well positioned for organic growth and the Board has mandated Borouge to explore international expansion opportunities. Further, our sustainability agenda underpins our commitment to decarbonisation and the circular economy.”

It was also announced that Borouge 4, a new polyolefins complex being built by major shareholders ADNOC and Borealis, is progressing as planned and is set to begin operations in 2025. The new complex is expected to add 1.4 million tonnes of polyethylene capacity, increasing Borouge’s total annual polyolefins production capacity to 6.4 million tonnes. Borouge’s board of directors has also authorised the company’s executive management to explore growth opportunities through international expansion.

Earlier, Borouge reported a 10 per cent year-on-year increase in overall production capacity in 2022, with the successful ramp-up of its PP5 unit adding significant production capacity of 500 kilo tonnes per annum, bringing more differentiated grades into the production mix and supporting premium production.

Borouge’s high impact value enhancement programme, focused on driving efficiencies within variable costs, fixed costs, and revenue enhancement, is expected to deliver a positive EBITDA impact of $400 million in 2023.

Management expects to sustain a 15 percent positive EBITDA impact from 2024 onwards, versus the 2022 baseline.