emirates7 - Borouge Plc shareholders have approved a final dividend for 2024 and a 2.5 percent share buyback program during their Annual General Meeting (AGM).
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Borouge Chairman, reaffirmed the company’s commitment to delivering significant returns to shareholders. This announcement follows the recent introduction of Borouge Group International, a global leader in polyolefins with a $60 billion valuation.
Dr. Al Jaber stated, "As we enter a new era of transformative growth, Borouge Group International will become a global petrochemical leader, combining scale, resilience, and innovation. Starting in 2025, Borouge plans to raise its dividend to at least 16.2 fils per share, which will be the minimum payout for Borouge Group International until 2030."
He further emphasized that at the current share price, investors can expect a 40 percent minimum cumulative dividend return from 2025 to 2030, the highest in the UAE. "ADNOC and OMV are building a larger, stronger, and more growth-oriented company focused on delivering superior shareholder returns," he added.
At the AGM, shareholders approved a final 2024 dividend of $650 million (7.94 fils per share), bringing the total annual payout to $1.3 billion (15.88 fils per share). Shareholders must hold shares by April 15, 2025, to be eligible for the dividend, with the distribution scheduled for April 28, 2025.
Additionally, ADNOC and OMV, the primary shareholders in Borouge Group International, plan to offer an estimated total dividend of $2.2 billion, equating to a minimum of 16.2 fils per share annually from 2026 to 2030, after the transaction is completed.
The AGM also approved a share buyback program of up to 2.5 percent of outstanding shares, subject to market conditions and regulatory approvals. This move reflects the company's strong confidence in its future prospects and the potential for significant growth beyond the current share price.
With the formation of Borouge Group International expected in the first quarter of 2026, investors are set to benefit from future earnings growth, which will directly contribute to higher dividend payouts. The company aims for a 90 percent net income payout ratio through to 2030.
The dividend will be supported by Borouge's robust balance sheet, steady profitability, substantial free cash flow, and backing from major shareholders ADNOC and OMV.
Inclusion in MSCI indices could also generate up to $400 million in index demand, improving stock liquidity.
Borouge Group International’s cash earnings per share are anticipated to grow by up to 30 percent over the next three to five years, with EBITDA projected to reach $7 billion.
Most near-term expansion projects are already funded and near completion. The Borouge 4 mega project, which will be transferred to Borouge Group International at cost, will add 1.4 million tonnes of capacity per annum, contributing approximately $900 million in annual EBITDA.
The expected EBITDA growth, combined with Borouge’s valuation metrics, provides a clear path for share price appreciation.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Borouge Chairman, reaffirmed the company’s commitment to delivering significant returns to shareholders. This announcement follows the recent introduction of Borouge Group International, a global leader in polyolefins with a $60 billion valuation.
Dr. Al Jaber stated, "As we enter a new era of transformative growth, Borouge Group International will become a global petrochemical leader, combining scale, resilience, and innovation. Starting in 2025, Borouge plans to raise its dividend to at least 16.2 fils per share, which will be the minimum payout for Borouge Group International until 2030."
He further emphasized that at the current share price, investors can expect a 40 percent minimum cumulative dividend return from 2025 to 2030, the highest in the UAE. "ADNOC and OMV are building a larger, stronger, and more growth-oriented company focused on delivering superior shareholder returns," he added.
At the AGM, shareholders approved a final 2024 dividend of $650 million (7.94 fils per share), bringing the total annual payout to $1.3 billion (15.88 fils per share). Shareholders must hold shares by April 15, 2025, to be eligible for the dividend, with the distribution scheduled for April 28, 2025.
Additionally, ADNOC and OMV, the primary shareholders in Borouge Group International, plan to offer an estimated total dividend of $2.2 billion, equating to a minimum of 16.2 fils per share annually from 2026 to 2030, after the transaction is completed.
The AGM also approved a share buyback program of up to 2.5 percent of outstanding shares, subject to market conditions and regulatory approvals. This move reflects the company's strong confidence in its future prospects and the potential for significant growth beyond the current share price.
With the formation of Borouge Group International expected in the first quarter of 2026, investors are set to benefit from future earnings growth, which will directly contribute to higher dividend payouts. The company aims for a 90 percent net income payout ratio through to 2030.
The dividend will be supported by Borouge's robust balance sheet, steady profitability, substantial free cash flow, and backing from major shareholders ADNOC and OMV.
Inclusion in MSCI indices could also generate up to $400 million in index demand, improving stock liquidity.
Borouge Group International’s cash earnings per share are anticipated to grow by up to 30 percent over the next three to five years, with EBITDA projected to reach $7 billion.
Most near-term expansion projects are already funded and near completion. The Borouge 4 mega project, which will be transferred to Borouge Group International at cost, will add 1.4 million tonnes of capacity per annum, contributing approximately $900 million in annual EBITDA.
The expected EBITDA growth, combined with Borouge’s valuation metrics, provides a clear path for share price appreciation.