Abu Dhabi’s Borouge to pay $650m in dividends for 2022

WAM

Abu Dhabi-listed petrochemicals company Borouge will pay a final dividend of $650 million for 2022.

The payout was approved by shareholders at the annual general meeting on Monday and will be distributed in April, state-owned WAM news agency reported.

The Abu Dhabi Securities Exchange-listed company has confirmed dividends of $1.3 billion in 2023.

Sultan bin Ahmed Al Jaber, minister of industry and advanced technology and chairman of Borouge, said that the company is well positioned for organic growth, and the board has mandated to explore international expansion opportunities.

Borouge 4, a new polyolefins complex 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.

In February 2023 Borouge reported an 8.2 percent year-on-year increase in revenue to $6.7 billion. Despite a challenging operating environment, it posted a net profit of $1.4 billion, in line with market expectations.

The company has a strong balance sheet with a cash balance of more than $1 billion at the end of 2022.

Borouge expects stable demand growth in its core Asia Pacific and Middle East markets, where economic growth rates are ahead of developed economies.

At the same time, the petrochemicals firm has set decarbonisation targets for 2030, which include a 100 percent reduction of continuous flaring, a decline of GHG emissions intensity by 25 percent and a drop of energy intensity by 30 percent, all against the 2018 baseline.