Borouge proposes 25% share buyback and final 2024 dividend of $1.3 billion
Borouge Plc, a leading UAE petrochemicals company, on Monday proposed to seek shareholder approval for a share buyback and final 2024 dividend at its in-person and virtual annual general meeting (AGM) on April 7, the company announced on Monday.
Borouge proposes to purchase up to 2.5 per cent of its issued share capital. The proposal comes after Borouge delivered outstanding 2024 financial results, achieving a 24 per cent year-on-year increase in net profit to $1.24 billion, superior free cash flow generation of c. $1.6 billion, driven by record production and sales volumes.
Fourth-quarter net profit increased 1 per cent quarter on quarter and 15 per cent year on year to $331 million, with revenue reaching $1.62 billion, up 1 per cent quarter on quarter and 8 per cent year on year. Sales volumes rose 8 per cent year on year and 3 per cent quarter on quarter, with total production flat year on year at 1.3 million tonnes.
Adjusted Ebitda rose 8.2 per cent year on year and 0.6 per cent quarter on quarter to $650 million. Borouge reinforced its industry leadership by delivering a healthy adjusted Ebitda margin of 40 per cent, supported by a focus on continued operational efficiencies and cost optimisation. Cash conversion was strong at 88 per cent, with a healthy adjusted operating free cash flow of $572 million, up 9 per cent year on year.
Full-year 2024 net profit increased 24 per cent to $1.24 billion, exceeding analyst expectations, and adjusted Ebitda increased 14 per cent to $2.48 billion. Revenue rose 4 per cent to $6 billion, while total costs improved by 2.1 per cent to $4.1 billion.
The high-value infrastructure solutions segment represented 40 per cent of total sales volume in 2024, underscoring Borouge's strong positioning in this key high-value segment. The high-growth market of Asia Pacific remained the top destination for Borouge's products, accounting for 63 per cent of total sales volumes for both the quarter and the full year.
'The proposed share buyback underscores the company's confidence in its long-term growth prospects and commitment to delivering superior returns to its shareholders through multiple avenues and underpinned by its exceptional operational and financial performance. Upon shareholder and regulatory approvals, the share buyback would be conducted through open market transactions in accordance with ADX regulations, with the quantity of shares repurchased dependent on market conditions and other factors,' a statement said.
Hazeem Sultan Al Suwaidi, CEO of Borouge, said: 'Borouge's share buyback to repurchase shares at an attractive valuation, underscores our commitment to enhancing shareholder value. With one of the highest dividend yields on the ADX, this buyback highlights our strong financial position and ability to seize value-accretive opportunities. Backed by a robust balance sheet and strong cash flow, we remain well-positioned to maximise returns while advancing the Borouge 4 expansion and other strategic initiatives.'
The share buyback, which, if approved will be overseen and managed by the Board of Directors, may be modified, or discontinued at any time, with the 2.5 per cent shares constituting the approved ceiling for the repurchase.
In addition to the share buyback proposal, shareholders will also vote to approve the final 2024 dividends of 7.94 fils per share which will be distributed on 28 April 2025, bringing its total 2024 dividend payout to $1.3 billion equivalent to 15.88 fils per share with an attractive annual dividend yield.
'Borouge is in a prime position, financially and operationally, to cement its role amongst the industry's leading companies and accelerate its growth ambitions,' the statmeent said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
5 days ago
- Al Etihad
UAE stock markets rebound
16 June 2025 21:01 A. SREENIVASA REDDY (ABU DHABI)The UAE stock markets on Monday recovered some losses suffered after the escalation of the Iran-Israel Abu Dhabi Securities Exchange (ADX) recorded gains, with its general index (FADGI) rising by 0.218% to close at 9,584.85. A total of 28,212 trades were executed, involving 368 million shares with a combined value of Dh1.383 billion. The total market capitalisation of all companies listed on the ADX stood at Dh2.987 trillion, which had fallen below the Dh3 trillion milestone due to escalating geopolitical Dhabi led the rally with a nearly 3% gain, followed by ADNOC Gas with a nearly 2% rise, and Multiply with a nearly 1% increase. Other top gainers on the ADX included Abu Dhabi National Company for Building Materials (+11.57%), Sudatel (+9.95%), and Presight AI (+5.83%). Notable decliners were UAQ Investments (-9.50%), Hayah Insurance (-5.17%), and Gulf Medical Projects (-2.63%). DFMThe Dubai Financial Market's general index (DFMGI) rose by 0.789% to close at 5,407. A total of 16,836 trades were executed on the DFM, involving 293 million shares with a combined value of Dh726 million. Share prices of 33 companies rose, 14 declined, and five remained unchanged. Amlak Finance led the rally with a 10% rise in share price, followed by DEWA (2.2%) and Emaar Developments (2.2%). The merger of Emirates Islamic Bank (EIB) with Emirates NBD has been completed, with the DFM announcing that all remaining shares have been transferred to the parent company. Among the other top gainers on Monday were United Foods (+9.58%), National General Insurance (+5.69%), and Al Salam Sudan (+5.26%). On the losing side, Al Ramz Capital fell by 9.60%, followed by Chimera S&P UAE Shariah ETF (-4.35%), BHM Capital (-2.33%), and NIH (-2.17%). Source: Aletihad - Abu Dhabi
Zawya
5 days ago
- Zawya
ADGM Board appoints Rashed Al Balooshi as CEO of the Registration Authority
Abu Dhabi, UAE: ADGM, the international financial centre of the UAE capital, today announced the appointment of Rashed Abdulkarim Al Balooshi as Chief Executive Officer of ADGM's Registration Authority (RA), effective immediately. The appointment reflects ADGM's ongoing commitment to bolstering its leadership team and accelerating the execution of its strategic mandate, in alignment with Abu Dhabi's long-term economic vision. Rashed Al Balooshi will take over the role from Hamad Al Mazrouei, who started a new endeavour within Abu Dhabi. In his new capacity, Al Balooshi will lead the Registration Authority at ADGM, which is responsible for the registration, licensing, and supervision of non-financial businesses within ADGM. His mandate includes enhancing operational efficiency, promoting the ease of doing business, and ensuring a progressive, transparent, and business-friendly regulatory framework in line with international best practices. Al Balooshi brings with him a wealth of experience, with an impressive career spanning over 24 years in the financial and regulatory sectors, including a distinguished tenure as CEO of the Abu Dhabi Securities Exchange (ADX) and Under Secretary of the Abu Dhabi Department of Economic Development (ADDED). Additionally, Al Balooshi serves on several boards and committees at the local and federal levels. His expertise across multiple sectors will play a pivotal role in driving the Registration Authority to new heights and reinforcing ADGM's position as a leading international financial hub. Commenting on this appointment, His Excellency Ahmed Jasim Al Zaabi, Chairman of ADGM, said: 'We are pleased to welcome Rashed Al Balooshi to ADGM's leadership team. His track record and deep understanding of the business and regulatory landscape will be instrumental in driving the next phase of ADGM's growth. H.E Al Zaabi added: 'We extend our sincere gratitude to Hamad Al Mazrouei for his valuable contributions and leadership during his tenure and wish him continued success in his new endeavour.' This appointment marks another significant step forward in ADGM's journey and continuity to becoming one of the world's most dynamic and business friendly international financial centres. About ADGM ADGM is the international financial centre (IFC) of the capital city of the United Arab Emirates, which opened for business on 21 October 2015. ADGM augments Abu Dhabi's position as a leading financial centre and a business hub, serving as a strategic link between the growing economies of the Middle East, Africa, South Asia, and the rest of the world. Operating within an international regulatory framework based on the direct application of English Common Law, ADGM governs the entirety of Al Maryah Island and Al Reem Island, collectively designated as the financial free zone of Abu Dhabi. ADGM is ranked as one of the most preferred and top-ranking IFCs in the Middle East and Africa region. Its progressive and inclusive business ecosystem fosters growth, resilience, and optimism for global financial and non-financial institutions. Growing synergies between ADGM and multiple jurisdictions have positioned the centre as one of the world's most advanced, diverse, and progressively governed financial hubs. For more details on ADGM, please visit or follow us on LinkedIn and Instagram: @ADGM X: @adglobalmarket For media queries, please contact: E: media@
Gulf Today
11-06-2025
- Gulf Today
Adnoc L&S, Borouge sign deal to boost UAE petrochemical exports
Borouge and Adnoc Logistics & Services (Adnoc L&S) have entered a 15-year strategic partnership that will support a significant increase in the production and export of petrochemicals from the UAE. The mutually beneficial service agreement will deliver a minimum guaranteed value of $531 million (Dhs1,950 million), supporting the next phase of Borouge's accelerated growth plans, driving operational cost savings over the full contract term, realising more than $50 million in cost savings and efficiencies in the first five years alone, and enhancing the company's supply chain network. The agreement covers port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City, Abu Dhabi. Adnoc L&S will manage the transportation of up to 70 per cent of Borouge's annual production, which will increase significantly following the completion of the Borouge 4 plant expansion. It will deploy a minimum of two dedicated container feeder ships to transport Borouge's products from Al Ruwais to the deepwater ports of Jebel Ali in Dubai and Khalifa Port in Abu Dhabi. Hazeem Sultan Al Suwaidi, CEO of Borouge, commented, 'This agreement builds on our long-standing collaboration with Adnoc L&S, a partnership that has been instrumental in meeting the evolving needs of our customers in high-growth markets. 'It brings significant benefits to Borouge; driving substantial operational cost savings and enhancing our Logistics Variable Cost (LVC), as well as complementing our existing rail operations and expanding the flexibility of our supply chain network.' 'With the rapid increase in our production capacity, we are advancing our capabilities in delivering differentiated products and solutions efficiently, while keeping pace with rising global demand.' As Borouge plans to ramp up production capacity by 1.4 million tonnes per annum by the end of 2026 through its Borouge 4 mega project, Borouge will become the world's largest single-site polyolefin complex. The partnership with Adnoc L&S will further enhance Borouge's supply chain efficiency as well as reinforcing Adnoc L&S' commitment to delivering innovative, integrated supply chain solutions that enhance trade, strengthen industrial resilience, and support the UAE's vision for economic diversification and global leadership. Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said, 'This comprehensive container terminal agreement marks a major milestone in our successful partnership with Borouge, delivering on Adnoc L&S' strategy to provide seamless, end-to-end logistics solutions that power the UAE's industrial growth and export ambitions. By leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge's world-class petrochemical products reach global markets efficiently and competitively.' WAM
