Borouge Plc, a leading innovator in polyolefins, has announced that its General Assembly Meeting (GAM) on August 30 approved a half-year 2024 interim cash dividend of $650 million, or 7.94 fils per share. This payout represents an annualized dividend yield of 6.3%. The company also reaffirmed its commitment to a total 2024 dividend of $1.3 billion, reflecting strong shareholder returns driven by exceptional first-half earnings growth.
The first half of 2024 was marked by significant progress for Borouge, with major initiatives both in the UAE and globally. Domestically, the advancement of the Borouge 4 project and internationally, the feasibility study for a specialty polyolefins complex in China, are set to expand Borouge’s global footprint. The company’s focus on premium products and cutting-edge technology continues to drive strong sales and reinforce its market leadership.
Hazeem Sultan Al Suwaidi, CEO of Borouge, highlighted the strong half-year performance, noting, “The substantial dividend reflects our operational excellence and strategic focus. Our efficiency and cost management have led to industry-leading EBITDA margins and robust cash generation. Projects like Borouge 4, EU2, and the planned specialty polyolefins complex in China, along with our AI initiatives, are poised to boost production capacity and unlock significant financial value. Our consistent performance underscores our commitment to delivering long-term shareholder value.”
In the first half of 2024, Borouge achieved a 35% increase in net profit, reaching $581 million, with a leading 42% EBITDA margin. This performance highlights the company’s ability to manage costs and maintain strong pricing despite global challenges.
The Borouge 4 project, now over 70% complete, will boost annual production capacity by 28%, adding approximately $1.9 billion in revenue once finished. The upgrade of the second ethylene unit (EU2), set to be completed in 2028, will contribute an additional $250 million in annual revenue. Furthermore, Borouge is expanding into China with a feasibility study for a new plant in Fuzhou, aimed at adding 1.6 million tonnes per year to production capacity. This international growth initiative, in partnership with Wanhua Chemical, will strengthen Borouge’s market position and enhance sales of its differentiated products in a rapidly growing market.
