Borouge, a leading petrochemical company specializing in innovative and distinctive polyolefin solutions, held its inaugural Annual General Meeting (AGM) on 13th March 2023. The meeting resulted in shareholders approving a final dividend of US$650 million for the fiscal year 2022, approximately 7.9 fils per share, which brings the total post-IPO dividend paid (June-December 2022) for the year to US$975 million.
Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Borouge, noted that the company’s performance in 2022 reaffirms its core value proposition as a highly profitable business focused on high-growth markets with strong long-term fundamentals, and industry-leading efficiency derived from a clear first-quartile cost position. The company’s innovative and differentiated products yield strong premia, enabling reliable margins and through-the-cycle dividend capacity. Borouge’s strong performance has enabled it to navigate market challenges and position itself for future growth to deliver competitive through-the-cycle shareholder returns. The company has committed to paying US$1.3 billion in dividends for 2023.
Borouge 4, a new polyolefins complex being 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 polyethene capacity, increasing Borouge’s total annual polyolefins production capacity to 6.4 million tonnes. Borouge’s Board of Directors has also authorized the company’s executive management to explore growth opportunities through international expansion.
The company’s financial results for the full year were announced in February 2023, reporting strong year-on-year growth in sales volumes, which drove revenue up 8.2 per cent to US$6.7 billion. Despite a challenging operating environment, the company’s net profit for the year was US$1.4 billion, in line with market expectations. Borouge has a strong balance sheet with a cash balance of over US$1 billion at year-end, providing ample headroom for growth.
Dr Sultan bin Ahmed Al Jaber added that the sustainability agenda underpins the company’s commitment to decarbonization and the circular economy. The company is well-positioned for organic growth and has mandated Borouge to explore international expansion opportunities.
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