emirates7 - Borouge Plc, a leading petrochemicals company specializing in innovative polyolefin solutions, will seek shareholder approval for a share buyback and final 2024 dividend at its Annual General Meeting (AGM) on April 7. The meeting, which will be held both in-person and virtually, will include a proposal allowing the company to repurchase up to 2.5 percent of its issued share capital.
This initiative follows Borouge’s impressive 2024 financial performance, which saw a 24 percent year-on-year increase in net profit, reaching $1.24 billion. Additionally, the company generated approximately $1.6 billion in free cash flow, supported by record production and sales volumes.
The proposed share buyback reflects Borouge’s confidence in its long-term growth and commitment to enhancing shareholder returns through multiple avenues. The repurchase, contingent on shareholder and regulatory approvals, would take place through open market transactions in line with Abu Dhabi Securities Exchange (ADX) regulations, with the number of shares bought back depending on market conditions and other factors.
Hazeem Sultan Al Suwaidi, CEO of Borouge, stated, “The decision to repurchase shares at an attractive valuation highlights our commitment to maximizing shareholder value. With one of the highest dividend yields on the ADX, this buyback underscores our strong financial position and ability to capitalize on value-generating opportunities. Supported by a robust balance sheet and healthy cash flow, we are well-positioned to enhance returns while advancing the Borouge 4 expansion and other strategic initiatives.”
If approved, the buyback will be overseen by the Board of Directors, with the 2.5 percent repurchase limit serving as the maximum allowable threshold. The plan may be adjusted or discontinued based on evolving circumstances.
Beyond the buyback proposal, shareholders will also vote on the approval of the final 2024 dividend of 7.94 fils per share, scheduled for distribution on April 28, 2025. This will bring Borouge’s total 2024 dividend payout to $1.3 billion, equating to 15.88 fils per share and offering an attractive annual dividend yield.
With strong financial and operational foundations, Borouge is well-positioned to solidify its standing as a leading industry player and drive forward its ambitious growth strategy.
This initiative follows Borouge’s impressive 2024 financial performance, which saw a 24 percent year-on-year increase in net profit, reaching $1.24 billion. Additionally, the company generated approximately $1.6 billion in free cash flow, supported by record production and sales volumes.
The proposed share buyback reflects Borouge’s confidence in its long-term growth and commitment to enhancing shareholder returns through multiple avenues. The repurchase, contingent on shareholder and regulatory approvals, would take place through open market transactions in line with Abu Dhabi Securities Exchange (ADX) regulations, with the number of shares bought back depending on market conditions and other factors.
Hazeem Sultan Al Suwaidi, CEO of Borouge, stated, “The decision to repurchase shares at an attractive valuation highlights our commitment to maximizing shareholder value. With one of the highest dividend yields on the ADX, this buyback underscores our strong financial position and ability to capitalize on value-generating opportunities. Supported by a robust balance sheet and healthy cash flow, we are well-positioned to enhance returns while advancing the Borouge 4 expansion and other strategic initiatives.”
If approved, the buyback will be overseen by the Board of Directors, with the 2.5 percent repurchase limit serving as the maximum allowable threshold. The plan may be adjusted or discontinued based on evolving circumstances.
Beyond the buyback proposal, shareholders will also vote on the approval of the final 2024 dividend of 7.94 fils per share, scheduled for distribution on April 28, 2025. This will bring Borouge’s total 2024 dividend payout to $1.3 billion, equating to 15.88 fils per share and offering an attractive annual dividend yield.
With strong financial and operational foundations, Borouge is well-positioned to solidify its standing as a leading industry player and drive forward its ambitious growth strategy.