UAE-based petrochemicals giant Borouge Plc has announced plans to seek shareholder approval for a share buyback and the final 2024 dividend during its annual general meeting (AGM) on April 7. The move comes after the company reported robust financial results for 2024, reinforcing its industry leadership and commitment to shareholder returns.
Borouge has proposed repurchasing up to 2.5% of its issued share capital, citing strong financial performance and confidence in its long-term growth prospects. The company recorded a 24% year-on-year increase in net profit, reaching $1.24 billion, driven by record production and sales volumes. Free cash flow stood at approximately $1.6 billion.
Financial Performance Highlights
Borouge’s fourth-quarter net profit rose by 1% quarter-on-quarter and 15% year-on-year to $331 million, with revenue increasing by 8% year-on-year to $1.62 billion. Sales volumes also saw an 8% annual increase, while total production remained steady at 1.3 million tonnes.
For the full year, adjusted EBITDA climbed 14% to $2.48 billion, with revenue growing 4% to $6 billion. Meanwhile, operational efficiencies led to a 2.1% reduction in total costs, which stood at $4.1 billion. The company’s adjusted EBITDA margin remained strong at 40%, supported by continued cost optimization and operational efficiencies.
The high-value infrastructure solutions segment accounted for 40% of total sales, underscoring Borouge’s strong positioning in this key market. The Asia-Pacific region remained a primary driver of growth, accounting for 63% of total sales volumes for both the quarter and the full year.
Strategic Move to Enhance Shareholder Value
In a statement, Borouge emphasized that the proposed share buyback reflects its commitment to delivering superior shareholder returns. Upon receiving necessary shareholder and regulatory approvals, the buyback would be conducted through open market transactions in accordance with Abu Dhabi Securities Exchange (ADX) regulations. The number of shares repurchased will depend on market conditions.
“Borouge’s share buyback to repurchase shares at an attractive valuation underscores our commitment to enhancing shareholder value,” said Hazeem Sultan Al Suwaidi, CEO of Borouge. “With one of the highest dividend yields on the ADX, this buyback highlights our strong financial position and ability to seize value-accretive opportunities.”
He further emphasized that Borouge’s robust balance sheet and strong cash flow position the company well for continued expansion, including the Borouge 4 project and other strategic initiatives.
Final Dividend Proposal
Alongside the share buyback, shareholders will vote to approve the final 2024 dividend of 7.94 fils per share, scheduled for distribution on April 28, 2025. This will bring Borouge’s total dividend payout for 2024 to $1.3 billion, equivalent to 15.88 fils per share, offering an attractive annual dividend yield.
If approved, the share buyback will be overseen by the Board of Directors and may be modified or discontinued based on market conditions.
“Borouge is in a prime position, financially and operationally, to cement its role among the industry’s leading companies and accelerate its growth ambitions,” the company stated.
With strong financial results and strategic initiatives in place, Borouge aims to strengthen its market position while delivering sustained value to its shareholders.
