Latest news with #BorougePlc
Zawya
11-06-2025
- Business
- Zawya
Borouge, ADNOC L&S enter $531mln partnership to accelerate UAE petrochemical exports
ABU DHABI - Borouge Plc and ADNOC Logistics & Services Plc (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 (AED1,950 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 percent 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.' ADNOC L&S' integrated logistics capabilities include managing container terminal operations, feeder services, and logistics solutions to meet increasing global demand. The agreement comes as ADNOC L&S continues to grow its international presence, providing comprehensive logistics solutions for global customers across various sectors.
Al Etihad
11-06-2025
- Business
- Al Etihad
Borouge, ADNOC L&S enter $531 million partnership to accelerate UAE petrochemical exports
11 June 2025 09:49 ABU DHABI (WAM) Borouge Plc and ADNOC Logistics & Services Plc (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 mutually beneficial service agreement will deliver a minimum guaranteed value of $531 million (Dh1,950 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 agreement covers port management, container handling, and feeder container ship services for the Borouge Container Terminal in Al Ruwais Industrial City, Abu 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 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 partnership with ADNOC L&S will further enhance Borouge's supply chain efficiency as well as reinforce 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 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 leveraging our extensive maritime and logistics expertise, we are ensuring that Borouge's world-class petrochemical products reach global markets efficiently and competitively.'ADNOC L&S' integrated logistics capabilities include managing container terminal operations, feeder services, and logistics solutions to meet increasing global demand. The agreement comes as ADNOC L&S continues to grow its international presence, providing comprehensive logistics solutions for global customers across various sectors.
Zawya
30-04-2025
- Business
- Zawya
UAE Borouge's Q1 profit beats estimate; to raise dividend
The UAE-based petrochemicals company Borouge Plc reported Q1 2025 net profit of $281 million, 3% higher than in the year-earlier period. The profit beat analysts' mean estimate of $246.62 million, according to LSEG data. Revenue for the period grew 9% year-on-year to $1.42 billion, driven by higher average selling prices and increased sales volumes. Borouge said it plans to increase dividend for 2025 to 16.2 fils per share, which is expected to be maintained until 2030. (Writing by Brinda Darasha; editing by Daniel Luiz)
Al Etihad
28-04-2025
- Business
- Al Etihad
Borouge set to boost production capacity to over 6.6 million tonnes
28 Apr 2025 11:52 ABU DHABI (WAM) Borouge Plc today announced a series of strategic asset expansion projects to accelerate its growth, contributing annually between $165 million (AED600 million) and $200 million (AED730 million) in EBITDA. The company has awarded two major contracts aimed at boosting the nameplate capacity of its second ethane cracker (EU2), and the fourth and fifth polyethylene units (PE4 and PE5). Linde Engineering has been awarded a contract for Front-End Engineering Design (FEED) services to upgrade Borouge's second ethane unit (EU2) with an additional capacity of 230,000 tonnes per annum (tpa). This strategic project is expected to increase the EU2 cracker's capacity by 15 percent, delivering significant financial gains upon completion in Q4 2028. Linde Engineering was selected for its expertise in design and execution, and its role as the licensor of the existing EU2 cracker. The ethane used as feedstock for the EU2 cracker is supplied by ADNOC Gas and ADNOC Refining, ensuring an integrated and reliable supply has also awarded Target Engineering Construction Company an engineering, procurement, and construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 production units, following a competitive bidding process. This enhancement will increase their nameplate capacity from 540,000 to 700,000 tpa each. Leveraging Borealis Borstar® Polyethylene technology, the project is scheduled to be ready for start-up in Q1 2027. Hazeem Sultan Al Suwaidi, CEO of Borouge, said, 'By increasing production at our EU2, PE4 and PE5 units, as well as delivering the Borouge 4 mega project, we are strategically positioned for accelerated growth." "The expansions of our ethylene and polyethylene capabilities will enable Borouge to meet growing market demands, unlock new revenue streams, and further strengthen our global market position. These projects demonstrate our commitment to innovation, operational excellence, and sustainable growth," he added. Since 2001, Borouge has increased its annual production capacity tenfold, reaching 5 million tpa and positioning itself among the top five polyolefin producers in the Middle East and Asia Pacific. Together with the Borouge 4 mega project, these expansion projects, once fully ramped up, will increase the company's annual total polyolefins production capacity to over 6.6 million tpa by 2028. These projects are driving significant value to the UAE's economy through ADNOC's In-Country Value (ICV) programme, supporting economic and industrial growth.
Khaleej Times
17-03-2025
- Business
- Khaleej Times
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.
