Borouge Plc shareholders have approved a final 2024 dividend and 2.5 percent share buyback programme at their Annual General Meeting (AGM).

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Chairman of Borouge, reaffirmed the company's commitment to delivering substantial shareholder returns in front of more than 250 retail and institutional shareholders, investors, and analysts, following the recent announcement of Borouge Group International, a $60 billion global polyolefins leader.

Dr. Al Jaber commented, "As we embark on a new era of transformative growth, Borouge Group International will be a global petrochemical powerhouse — combining scale, resilience and innovation. In 2025, Borouge intends to increase its dividend to at least 16.2 fils per share, which will serve as the minimum payout for Borouge Group International through to 2030.

He added that at the current Borouge share price, this would give investors a 40 percent minimum cumulative dividend return from 2025 to 2030, the highest in the UAE.

"Simply put, ADNOC and OMV are building a bigger, stronger, growth-orientated company that is focussed on delivering superior total shareholder returns to our investors," Dr. Al Jaber added.

Borouge shareholders approved a $650 million (7.94 fils per share) final dividend for 2024 at the AGM, 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 15th April 2025, with distribution on 28th April 2025.

In addition, ADNOC and OMV, as the main shareholders in Borouge Group International, have announced their intention, post closing of the transaction, to offer an attractive estimated total dividend of $2.2 billion, equivalent to a minimum of 16.2 fils per share dividend, annually from 2026 to 2030.

The AGM also approved a share buyback of up to 2.5 percent of outstanding shares via open-market transactions, subject to market conditions and regulatory approvals. The buyback reflects the company's strong confidence in its future prospects and the significant upside potential beyond the current share price.

With the creation of Borouge Group International, expected in the first quarter of 2026, investors in the new entity are expected to benefit from future earnings growth that is set to translate directly into higher dividend payments. This will be supported by the company's intention to a 90 percent net income payout ratio through to 2030.

The dividend will be supported by a strong balance sheet, resilient profitability, substantial free cash flow generation and the backing of its majority shareholders, global energy leaders ADNOC and OMV.

Furthermore, anticipated inclusion in MSCI indices could generate up to $400 million of index demand, further enhancing stock liquidity.

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

Importantly, the majority of near-term expansion projects have already been funded and are nearing completion. Notably, the Borouge 4 mega project would be transferred to Borouge Group International at cost, unlocking substantial value for shareholders.

Once fully operational, the plant will add 1.4 million tonnes per annum of additional capacity and is expected to contribute approximately $900 million in annual EBITDA through a typical business cycle.

The expected trajectory of EBITDA growth and the resulting earnings per share accretion, combined with Borouge's current valuation metrics, including EV/EBITDA and P/E multiples, provides a clear pathway for share price accretion.