Borouge Announces Increased Dividends and Bold Growth Plans Ahead of Global Merger

Shareholders approve $1.3B payout and share buyback as Borouge sets sights on forming $60B Borouge Group International with higher dividends and tripled capacity by 2026

Borouge Plc has unveiled a robust outlook for shareholders, announcing an increased dividend payout and an ambitious growth roadmap tied to its upcoming global merger. At the company’s Annual General Meeting (AGM), shareholders approved a final 2024 dividend of $650 million — or 7.94 fils per share — 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 set for April 28, 2025.

In a strategic move to further reward investors, Borouge also revealed plans to increase its annual dividend to at least 16.2 fils per share starting in 2025, offering a minimum cumulative return of 40% through 2030, the highest in the UAE.

This announcement comes alongside shareholder approval of a 2.5% share buyback programme, to be executed via open-market transactions, subject to regulatory approvals and market conditions.

Formation of Borouge Group International

The dividend hike and buyback programme precede the formation of Borouge Group International, a $60 billion global polyolefins leader resulting from the proposed combination of Borouge, Borealis, and the acquisition of Nova Chemicals. Slated for completion in the first quarter of 2026, the new entity is designed to drive significant near-term growth, backed by ADNOC and OMV, the company’s major shareholders.

The newly formed group will nearly triple Borouge’s current production capacity, rising from 5 million tonnes to 13.6 million tonnes per annum, and will continue to target a 90% net income payout ratio through to 2030.

According to Borouge, cash earnings per share at Borouge Group International are projected to grow up to 30% over the next three to five years, with EBITDA expected to rise to $7 billion.

Backing from ADNOC and OMV

Post-transaction, ADNOC and OMV have committed to offering a minimum annual dividend of $2.2 billion (16.2 fils per share) through to 2030, reinforcing their commitment to delivering strong and sustainable shareholder returns.

Dr. Sultan Al Jaber, Chairman of Borouge, emphasized:

“As we embark on a new era of transformative growth, Borouge Group International will be a global petrochemical powerhouse — combining scale, resilience and innovation. Simply put, ADNOC and OMV are building a bigger, stronger, growth-oriented company focused on delivering superior total shareholder returns.”

Value Creation and Market Positioning

The new entity will benefit from a diversified global footprint, improved access to growth markets, and a broader, high-margin product portfolio enabled by proprietary technologies. The Borouge 4 mega project, already funded and nearing completion, will be integrated at cost, adding 1.4 million tonnes of annual capacity and an expected $900 million in annual EBITDA.

Cost synergies from the merger are estimated at $500 million annually, with 75% expected within the first three years. Inclusion in MSCI indices could bring in up to $400 million in index demand, enhancing stock liquidity.

With strong backing, a resilient balance sheet, and significant future cash flow, Borouge Group International is poised to become a dominant force in the global polyolefins sector, supporting critical industries such as energy, healthcare, infrastructure, and agriculture.

This strategic transformation and elevated dividend outlook position Borouge as a top-tier investment opportunity in the UAE, with a long-term focus on innovation, global expansion, and sustainable value creation.