ADNOC’s Borouge clears $1.2b profit, plans $1.3b dividend for 2025

Dubai: The UAE petrochemicals giant Borouge pulled out a 24% growth in 2024 net profit to $1.2 billion from just over $1 billion a year ago.

The ADNOC joint venture said in a statement that the tally ‘exceeds market expectations’ and is backed up by an ‘industry-leading’ EBITDA margin of 41%.

Full-year revenues were $6 billion (a gain of 4%), while sales volume hit its highest level of 5.2 million tonnes.

Borouge confirmed its intent to pay $1.3 billion as dividend payout this year. It’s been the same for the last two years.

“With Borouge delivering on all fronts, we are pleased to announce our intention to maintain a $1.3 billion dividend for the 2025 financial year, representing a 6.3% current dividend yield,” said Hazeem Sultan Al Suwaidi, CEO of Borouge.
“As we enter a period of accelerated growth, the company remains fully committed to generating attractive shareholder returns in the years ahead.”

The Borouge dividend yield has consistently been at the over 6% mark. On ADX, the stock is trading at Dh2.54.

The Borouge results come as ADNOC confirmed negotiations are continuing with JV partner Borealis to combine ‘their existing shareholdings in Borouge plc and Borealis AG are ongoing in a constructive and positive’.
ADNOC is also planning a buy Nova Chemicals Corp. from Mubadala Investment Company, in a major planned consolidation of its petrochemicals interest.

Higher prices for 2025?
When it comes to its product prices, Borouge’s guidance for is for a premia over product benchmark ‘remains at $200 per tonne for polyethylene and $140 per tonne for polypropylene’. And with ‘average selling prices improving in Q1 2025 from Q4-2024 levels’

According to Al Suwaidi, “The Borouge 4 strategic expansion project will transform the scale of production by almost a third – and enhance our innovation capabilities, driving sales growth in our major markets.
“We are also implementing a comprehensive digital and AI transformation programme, which is already enhancing productivity and will reimagine our operations in the coming years.”