Borouge, ADNOC’s petrochemical joint venture, plans to buy back up to 2.5% of its issued share capital from the open market. This decision follows the company’s impressive financial performance in 2024, which saw net profit rise by 24% to $1.24 billion. Additionally, Borouge generated a record $1.6 billion in free cash flow, driven by increased production and sales.
The share buyback will follow Abu Dhabi Securities Exchange (ADX) regulations. However, the actual number of shares repurchased will depend on market conditions and other factors.
Strengthening Shareholder Value
Borouge’s CEO, Hazeem Sultan Al Suwaidi, highlighted that this buyback reflects the company’s ongoing efforts to enhance shareholder value.
“With one of the highest dividend yields on ADX, this buyback highlights our strong financial position and ability to seize value-accretive opportunities. We remain well-positioned to maximize returns while advancing the Borouge 4 expansion and other strategic initiatives.”
Expansion Plans and Dividend Payouts
Borouge is actively expanding its market presence. Recently, ADNOC and Austrian partner OMV announced a plan to merge Borouge and Borealis, forming Borouge Group International. This consolidation aims to strengthen their position in the polyolefins sector while unlocking new growth opportunities.
In addition, the Comapny will distribute a second-half dividend of 7.94 fils per share on April 28, bringing its total 2024 payout to $1.3 billion (15.88 fils per share). Shareholders will review these financials during the annual general meeting on April 7.
With a strong balance sheet and strategic expansion underway, Borouge continues to position itself as a key player in the global petrochemical industry.
