Source: ZAWYA
Abu Dhabi | April 30, 2025 Borouge Plc,the ADNOC-backed petrochemicals firm, reported net profit this time around stood at $281M, whereas it was $273M during the same period of the previous year. However, the profit decreased from $331 million reported in the last quarter of 2024. The company has sustained a profit margin of 20% for another consecutive quarter, proving its resilience to challenges affecting the industry.
Borouge undergoes significant corporate transformation in the face of Q1 performance. The company is merging the operations of Borouge, Borealis of Austria, and Nova Chemicals of the USA to form the Borouge Group International:$60 billion company for global leadership in petrochemicals.The transaction is expected to be completed by Q1 2026.
“The new entity has been designed to deliver consistently strong dividends and significant near-term growth, with the transactions scheduled for completion in Q1-2026,” said a statement.
More Dividends with Shareholder Attention
On the other hand, Borouge has remained committed to creating value for the shareholders. The company has decided to increase its dividend to 16.2 fils per share for 2025, which is also set as the minimum distribution under the new group structure through to 2030. This equals an annual dividend yield of 6.3% and cumulative returns of 38% through 2030 based on a 90% net income payout ratio.
On the Q1-25 numbers, “Borouge is firmly positioned on an accelerated growth trajectory having demonstrated remarkable resilience and operational excellence over the past couple of years,” said Hazeem Sultan Al Suwaidi, CEO of the ADNOC joint venture.
“This gives us strong confidence as we enter a new phase of transformational growth with Borouge Group International.
“A core focus of our strategy remains on delivering superior value to our shareholders, demonstrated by Borouge’s intention to further increase our dividend to 16.2 fils per share for 2025 – which will also serve as the intended minimum share payout up to 2030 under Borouge Group International.”
Consideration
In its much-lauded performance in the first quarter and with the intended merger, the company is moving toward the realization of this dream about the deepening of new markets. Through the creation of Borouge Group International with higher dividends, the company reinforces its commitment to growth, innovation, and long-term shareholder value.
