Borouge, the joint venture between Adnoc and Austrian chemicals producer Borealis, will pay an interim dividend of $325 million to its shareholders after the company posted a strong profit in the first half of the year on the back of higher revenue.
The total interim dividend payment, amounting to 3.97 fils per share for the year 2022, was approved during the company’s general assembly meeting, the company said in a statement on Friday to the Abu Dhabi Securities Exchange, where its shares are traded. This is the first payment of the expected total dividend of $975m for the full year.
“Borouge reported strong maiden half-year results with double-digit growth in revenue, significant sales volume growth and strong cash flow generation,” said Hazeem Al Suwaidi, chief executive of Borouge.
“We are optimistic regarding the future growth of the company and we will continue to focus on executing our strategy built around our differentiated products and innovative solutions that have a positive impact on society.”
Borouge, which raised $2 billion through an initial public offering (IPO) earlier this year, reported a more than 2 per cent increase in its 2022 first-half profit to $853m as revenue during the period grew 16.4 per cent year-on-year to $3.5bn.
The company’s second-quarter profit surged about 35 per cent to $490m as revenue climbed an annual 18 per cent to $1.87bn, according to its financial statement.
Established in 1998, Borouge is a petrochemical company that employs more than 3,000 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.
Adnoc owns 54 per cent of the company, while Borealis controls 36 per cent.
The company was added to the FTSE Russell’s FTSE Global Equity Index Series following its listing in June.
It is also constructing the fourth Borouge plant within the polyolefin manufacturing complex in Ruwais to meet the growing demand for polyolefins in the Middle East, Africa and Asia, the company said in July.