Dubai: The ADNOC joint venture Borouge has got the shareholder go-ahead to pay out an H1-2024 interim dividend of $650 million, or 7.94 fils per share. This works out to an impressive annualised dividend yield of 6.3 per cent.
In all, shareholders will get $1.3 billion as dividend for full-year 2024 'following exceptional growth in first-half earnings'. (The last entitlement date for a share in the dividend is September 5.)
In the UAE, this was reflected in advances at key projects such as Borouge 4, while overseas, Borouge took on feasibility study for a specialty polyolefins complex in China. If that goes ahead, it will 'significantly expand its global footprint'. (Austrian petrochemicals giant Borealis is the other major shareholder in Borouge.)
"Growth initiatives such as Borouge 4, EU2, and our feasibility study for a planned speciality polyolefins complex in China, along with our ambitious AI programme, will significantly boost our production capacity, enhance productivity, and unlock significant financial value," said Hazeem Sultan Al Suwaidi, CEO.
In the first six months of 2024, Borouge had a 35 per cent increase in net profit to $581 million, which realised an 'industry-leading' 42 per cent EBITDA margin. This reflects the company's 'ability to optimise costs and maintain a strong price premium in global markets, even under challenging conditions'.
The Borouge 4 project is over 70 per cent complete. Once done, it will raise annual production capacity by 28 per cent, and helping with approximately $1.9 billion to annual revenue.
The upgrade of the second ethylene unit (EU2), scheduled for completion in 2028, will add approximately $250 million to Borouge's top-line.
