Latest news with #BorougeGroupInternational
Zawya
16-07-2025
- Business
- Zawya
ADNOC to transfer 24.9% stake in OMV to investment subsidiary XRG
ADNOC will transfer its 24.9% stake in Austrian oil and gas group OMV AG (OMV) to its $80 billion lower-carbon energy and chemicals investment company XRG, which it launched in November last year. The transfer is aligned with ADNOC's strategy to consolidate its international growth investments under XRG. XRG will also hold ADNOC's proposed 46.94% stake in the yet-to-be established Borouge Group International upon completion of the transaction. (Writing by Bindu Rai, editing by Seban Scaria)
Gulf News
30-04-2025
- Business
- Gulf News
ADNOC venture Borouge nets $281m in Q1-2025 profit
Dubai: The ADNOC backed petrochemicals company Borouge pulled out $281 million in Q1-2025 net profit, from $273 million a year ago. From a quarter-on-quarter comparison, there is a drop from Q4-24's $331 million. Borouge, which is going through a major corporate makeover, maintained its profit margins at 20% over the last two quarters. Up for major changes The latest numbers set up the 'foundation' for the proposed combining of Borouge and the other petrochemicals entity Borealis. Plus, there is acquisition of US-based Nova Chemicals to create Borouge Group International, which will be a '$60 billion global petrochemicals leader'. "The new entity has been designed to deliver consistently strong dividends and significant near-term growth, with the transactions scheduled for completion in Q1-2026," said a statement. Higher dividend ADNOC and the other major shareholder in Borouge, OMV, are creating Borouge Group International. Once all the pieces are in place for the transformation, investors will get an 'attractive estimated total dividend of $2.2 billion'. That's equal to a minimum of 16.2 fils per share dividend from 2026 to 2030, which is a 6.3% annual dividend. (This is based on an intended 90% net income pay-out ratio. Borouge and Borouge Group International dividends represent a 38% cumulative dividend return through to 2030.) On the Q1-25 numbers, "Borouge is firmly positioned on an accelerated growth trajectory having demonstrated remarkable resilience and operational excellence over the past couple of years," said Hazeem Sultan Al Suwaidi, CEO of the ADNOC joint venture. "This gives us strong confidence as we enter a new phase of transformational growth with Borouge Group International. "A core focus of our strategy remains on delivering superior value to our shareholders, demonstrated by Borouge's intention to further increase our dividend to 16.2 fils per share for 2025 - which will also serve as the intended minimum share payout up to 2030 under Borouge Group International.'
Khaleej Times
08-04-2025
- Business
- Khaleej Times
Borouge announces increased dividend of 16.2 fils per share from 2025
Borouge Plc shareholders have approved a final 2024 dividend and 2.5 per cent share buyback programme at their Annual General Meeting (AGM). Borouge Group International, a $60 billion global polyolefins leader, will be formed after the proposed combination of Borouge and Borealis, and the acquisition of Nova Chemicals. This 'has been designed to deliver consistently strong dividends and significant near-term growth, and will have a production capacity of 13.6 million tonnes – nearly tripling Borouge's current capacity,' a statement said. Borouge shareholders approved a $650 million (7.94 fils per share) final dividend for 2024 at the AGM, bringing the total annual payout to $1.3 billion (15.88 fils per share). The last day for shareholders to be eligible for the dividend is April 15, 2025, with distribution on April 28, 2025. In addition, Adnoc and OMV, as the main shareholders in Borouge Group International, have announced their intention, post closing of the transaction, to offer an attractive estimated total dividend of $2.2 billion, equivalent to a minimum of 16.2 fils per share dividend, annually from 2026 to 2030. The AGM also approved a share buyback of up to 2.5 per cent of outstanding shares via open-market transactions, subject to market conditions and regulatory approvals. With the creation of Borouge Group International, expected in the first quarter of 2026, investors in the new entity are expected to benefit from future earnings growth that is set to translate directly into higher dividend payments. This will be supported by the company's intention to a 90 per cent net income payout ratio through to 2030. The dividend will be supported by a strong balance sheet, resilient profitability, substantial free cash flow generation and the backing of its majority shareholders, global energy leaders Adnoc and OMV. Furthermore, anticipated inclusion in MSCI indices could generate up to $400 million of index demand, further enhancing stock liquidity. Cash earnings per share at Borouge Group International are expected to grow up to 30 per cent over the next three to five years, with earnings before interest, taxes, depreciation and amortisation (Ebitda) projected to rise to $7 billion. Importantly, the majority of near-term expansion projects have already been funded and are nearing completion. Notably, the Borouge 4 mega project would be transferred to Borouge Group International at cost, unlocking substantial value for shareholders. Once fully operational, the plant will add 1.4 million tonnes per annum of additional capacity and is expected to contribute approximately $900 million in annual Ebitda through a typical business cycle. In recent years, the three entities have achieved $1 billion of cost savings and profitability enhancements, with $607 million coming from Borouge. Looking ahead, Borouge Group International is expected to deliver around $500 million synergies per annum, with 75 per cent to be realised within the first three years. The new entity is also targeting significant value creation through the synchronised deployment of growth capital expenditure. Borouge Group International will have enhanced access to major global growth markets, capitalising on strong long-term demand trends. Its diversified geographic footprint and broadened product suite will strengthen resilience and reduce exposure to regional market fluctuations. Through the new entity, production capacity is set to increase almost threefold — from 5 million tonnes to 13.6 million tonnes per annum — enabling the production of a wider range of premium polyolefin products. Proprietary technologies will underpin the delivery of a high margin, differentiated portfolio. The combined platform will also consolidate and optimise sales, distribution, and innovation across key regions, enhancing market reach and efficiency. Additionally, Borouge Group International will benefit from relative feedstock cost advantages, particularly in the UAE, United States, and Canada. 'The creation of Borouge Group International is being pursued at a low point in the polyolefin business cycle and will unlock value creation opportunities in a sector that serves key growth industries including energy and infrastructure, healthcare and agriculture,' a statement said. Dr. Sultan Al Jaber, Chairman of Borouge, commented: 'As we embark on a new era of transformative growth, Borouge Group International will be a global petrochemical powerhouse — combining scale, resilience and innovation. In 2025 Borouge intends to increase its dividend to at least 16.2 fils per share, which will serve as the minimum payout for Borouge Group International through to 2030. At the current Borouge share price, this would give investors a 40 per cent minimum cumulative dividend return from 2025 to 2030, the highest in the UAE. Simply put, Adnoc and OMV are building a bigger, stronger, growth-orientated company that is focussed on delivering superior total shareholder returns to our investors.'
Trade Arabia
08-04-2025
- Business
- Trade Arabia
Borouge gets investors' nod for $650m dividends distribution
Borouge, an Abu Dhabi–based petrochemicals major, has announced that it has secured the approval from its shareholders at the Annual General Meeting (AGM) for distribution of $650 million (7.94 fils per share) dividends for 2024 and also a 2.5% share buyback programme. With these new dividends, Borouge's total annual payout to the shareholders has surged to $1.3 billion (15.88 fils per share). Borouge is a joint venture between Abu Dhabi National Oil Company (Adnoc) and Austria- based Borealis, a leading provider of chemical and innovative plastics solutions. Speaking at the AGM, Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Adnoc Managing Director and Group CEO, and Chairman of Borouge, reaffirmed the company's commitment to delivering substantial shareholder returns in front of more than 250 retail and institutional shareholders, investors, and analysts, following the recent announcement of Borouge Group International, a $60 billion global polyolefins leader. "As we embark on a new era of transformative growth, Borouge Group International will be a global petrochemical powerhouse - combining scale, resilience and innovation," stated Al Jaber. In 2025, Borouge intends to increase its dividend to at least 16.2 fils per share, which will serve as the minimum payout for Borouge Group International through to 2030, he noted. Al Jaber pointed out that the current Borouge share price would give investors a 40% minimum cumulative dividend return from 2025 to 2030, the highest in the UAE. "Simply put, Adnoc and OMV are building a bigger, stronger, growth-orientated company that is focussed on delivering superior total shareholder returns to our investors," he added. ADNOC and OMV, as the main shareholders in Borouge Group International, have announced their intention, post closing of the transaction, to offer an attractive estimated total dividend of $2.2 billion, equivalent to a minimum of 16.2 fils per share dividend, annually from 2026 to 2030. The AGM also approved a share buyback of up to 2.5% of outstanding shares via open-market transactions, subject to market conditions and regulatory approvals. The buyback reflects the company's strong confidence in its future prospects and the significant upside potential beyond the current share price. With the creation of Borouge Group International, expected in the first quarter of 2026, investors in the new entity are expected to benefit from future earnings growth that is set to translate directly into higher dividend payments. This will be supported by the company's intention to a 90 percent net income payout ratio through to 2030.
Zawya
08-04-2025
- Business
- Zawya
Borouge announces increased dividend from 2025
ABU DHABI - Borouge Plc shareholders have approved a final 2024 dividend and 2.5 percent share buyback programme at their Annual General Meeting (AGM). Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Chairman of Borouge, reaffirmed the company's commitment to delivering substantial shareholder returns in front of more than 250 retail and institutional shareholders, investors, and analysts, following the recent announcement of Borouge Group International, a $60 billion global polyolefins leader. Dr. Al Jaber commented, "As we embark on a new era of transformative growth, Borouge Group International will be a global petrochemical powerhouse — combining scale, resilience and innovation. In 2025, Borouge intends to increase its dividend to at least 16.2 fils per share, which will serve as the minimum payout for Borouge Group International through to 2030. He added that at the current Borouge share price, this would give investors a 40 percent minimum cumulative dividend return from 2025 to 2030, the highest in the UAE. "Simply put, ADNOC and OMV are building a bigger, stronger, growth-orientated company that is focussed on delivering superior total shareholder returns to our investors," Dr. Al Jaber added. Borouge shareholders approved a $650 million (7.94 fils per share) final dividend for 2024 at the AGM, bringing the total annual payout to $1.3 billion (15.88 fils per share). The last day for shareholders to be eligible for the dividend is 15th April 2025, with distribution on 28th April 2025. In addition, ADNOC and OMV, as the main shareholders in Borouge Group International, have announced their intention, post closing of the transaction, to offer an attractive estimated total dividend of $2.2 billion, equivalent to a minimum of 16.2 fils per share dividend, annually from 2026 to 2030. The AGM also approved a share buyback of up to 2.5 percent of outstanding shares via open-market transactions, subject to market conditions and regulatory approvals. The buyback reflects the company's strong confidence in its future prospects and the significant upside potential beyond the current share price. With the creation of Borouge Group International, expected in the first quarter of 2026, investors in the new entity are expected to benefit from future earnings growth that is set to translate directly into higher dividend payments. This will be supported by the company's intention to a 90 percent net income payout ratio through to 2030. The dividend will be supported by a strong balance sheet, resilient profitability, substantial free cash flow generation and the backing of its majority shareholders, global energy leaders ADNOC and OMV. Furthermore, anticipated inclusion in MSCI indices could generate up to $400 million of index demand, further enhancing stock liquidity. Cash earnings per share at Borouge Group International are expected to grow up to 30percent over the next three to five years, with EBITDA projected to rise to $7 billion. Importantly, the majority of near-term expansion projects have already been funded and are nearing completion. Notably, the Borouge 4 mega project would be transferred to Borouge Group International at cost, unlocking substantial value for shareholders. Once fully operational, the plant will add 1.4 million tonnes per annum of additional capacity and is expected to contribute approximately $900 million in annual EBITDA through a typical business cycle. The expected trajectory of EBITDA growth and the resulting earnings per share accretion, combined with Borouge's current valuation metrics, including EV/EBITDA and P/E multiples, provides a clear pathway for share price accretion.
