Borouge to distribute interim dividend of $650 million

The shareholders of Borouge Plc, a leading petrochemical company that provides innovative and differentiated polyolefin solutions, have voted to approve an interim dividend of US $650 million (AED2.38 billion) for the first half of 2023, equivalent to 7.9 fils per share.

The interim dividend will be paid to shareholders who have purchased Borouge shares as of 7 September 2023, the company said in a statement. This represents the first part of the expected total FY 2023 dividend of $1.3 billion, which is equivalent to 15.8 fils per share, the company said. The approval for the dividend came during Borouge’s General Assembly meeting on Wednesday.

Hazeem Sultan Al Suwaidi, Chief Executive Officer of Borouge, said: “We are delighted to announce the shareholders’ approval of the interim dividend amounting to $650 million, reiterating our commitment to paying $1.3 billion in dividends for 2023 while continuing to deliver exceptional returns to our shareholders through our innovative and differentiated solutions. We maintain strong cash conversion and a robust balance sheet position which enables us to deliver significant through-the-cycle dividends to our shareholders even in an overall challenging market environment.”

The dividend payment, despite the prevailing market challenges, aligns with Borouge’s strategic objective of delivering exceptional shareholder returns. Borouge continues to future-proof the company by unlocking new opportunities, optimising efficiency, driving growth, and delivering competitive dividends.

In the first half of 2023, Borouge announced revenues of $2.8 billion and adjusted EBITDA of $978 million. Tracking ahead of its full-year target of $400 million, the company’s ambitious Value Enhancement Programme delivered a material impact of $253 million through enhanced efficiencies and optimised revenue, significantly and positively contributing to mitigating external market pressures, Borouge said.