Borouge, the joint venture between Adnoc and Austrian chemicals producer Borealis, has said it will pay a final dividend of $650 million to its shareholders for fiscal year 2022.
Amounting to almost 7.9 fils per share, the dividend was approved during the company’s annual general meeting on Monday, Borouge said in a statement to the Abu Dhabi Securities Exchange (ADX), where its shares are traded.
It brought the total post-initial public offering dividend paid (June-December period) for the year to $975 million. In September, the company announced an interim dividend of $325 million to its shareholders.
The final dividend will be paid to shareholders in April.
The company said it is committed to paying $1.3 billion in dividends for 2023.
“Our performance in 2022 clearly reaffirms our core value proposition as a highly profitable business that is focused on high-growth markets with strong, long-term fundamentals and industry-leading efficiency derived from a clear first-quartile cost position,” said Dr Sultan Al Jaber, chairman of Borouge, who is also Minister of Industry and Advanced Technology.
“The company is well positioned for organic growth and the board has mandated Borouge to explore international expansion opportunities. Further, our sustainability agenda underpins our commitment to decarbonisation and the circular economy.”
In May last year, Borouge raised $2 billion through an IPO and was listed on the ADX.
After its listing, Borouge was included in the FTSE Global Equity Index Series, which is used by investors globally to guide asset-allocation decisions and support portfolio construction.
Last month, Borouge reported an 8 per cent rise in its 2022 revenue on higher sales volumes. Revenue for the 12-month period ending in December climbed to $6.72 billion, from $6.22 billion in 2021.
Total sales volume grew by about 15 per cent as Borouge increased production from its fifth polypropylene unit (PP5), which raised the company’s production capacity by 500,000 tonnes a year.
Polypropylene, Borouge's main product, is a thermoplastic material used in products including plastic packaging, car parts and textiles.
The company said its Borouge 4 facility is progressing according to plan, with operations to begin in 2025. It is estimated the complex will contribute an additional 1.4 million tonnes of polyethylene capacity, boosting total annual polyolefins production capacity to 6.4 million tonnes.
Established in 1998, Borouge is a petrochemical company that employs more than 3,100 people and serves customers in more than 50 countries across Asia, the Middle East and Africa.
It provides polyolefin solutions for the agricultural, infrastructure, energy, advanced packaging, mobility and healthcare industries.
Its portfolio of products includes polythene and polypropylene — the two most common forms of polymer — which are used in a variety of products including pipes, fittings, wires and cables as well as in products that have automotive, sustainable packaging, agricultural and medical applications.