Abu Dhabi (Etihad)
“Buruj PLC” announced the approval of its shareholders to distribute final cash dividends of $650 million (at 7.94 fils per share), as part of the interim dividends in 2023, bringing the total distributions for the same year to $1.3 billion, in addition to the approval of all items. Included in the agenda of the annual general meeting.
As part of its commitment to shareholders, Borouge, the leading petrochemical company in providing innovative and diversified polyolefin solutions, confirmed during the meeting its intention to distribute a total cash dividend of $1.3 billion for the fiscal year 2024, which confirms its commitment to achieving outstanding value for shareholders and highlights its ability to face challenges. and market conditions.
Exceptional performance
His Excellency Dr. Sultan Ahmed Al Jaber, Chairman of the Board of Directors of Borouge, said: Borouge achieved exceptional performance in 2023, outperforming its peers in the sector and confirming its high operational and financial flexibility. The company has also established its position as one of the most profitable and innovative polyolefin producers in the world, and seeks “Borouge” aims to achieve accelerated growth locally and internationally, and “Borouge 4” complex is considered one of the strategic projects within the company’s local growth plans, which will add revenues ranging between 1.5 to 1.9 billion dollars, when its ownership is transferred to Borouge and it begins operating at its full production capacity. This project will increase the company’s production capacity by 28%, which will make Borouge’s production complex in Ruwais Industrial City the largest integrated polyolefin production complex in one location in the world.”
He continued: As part of our continuous endeavor to achieve more progress, I am pleased to announce the second ethylene unit, which represents a new project that, upon completion by 2028, will enable us to make significant progress in implementing our plans aimed at increasing the volume of our total production of olefin and polyolefin by 230 kilotons. We expect this expansion to contribute additional revenues ranging from $220 to $250 million annually, and at the international level, we have reached the feasibility study stage for one of the important opportunities in Asia and the Pacific.
He added: We are confident of Borouge’s ability to move forward successfully and steadily during the year 2024 and beyond, and achieve the best levels of performance and growth at the market level despite the intense competition witnessed by the sector, based on a strong business model, its continued focus on innovation, and its employment For digital technology and artificial intelligence.
Operations efficiency
For his part, Hazim Sultan Al Suwaidi, CEO of Borouge, said: “The strong dividends for 2023, totaling $1.3 billion, reflect the success of our business strategy and the efficiency and flexibility of our operations. Despite the market challenges, our focus on operational and commercial excellence has resulted in achieving exceptional performance compared to our peers.” At the global level, the great success we have achieved in the value enhancement program has led to improved revenues and increased efficiency in cost management in light of the decline in global prices. At the same time, we are considering implementing additional initiatives to enhance the company’s competitive cost position, and it remains to achieve sustainable growth and provide the best possible value. Our shareholders are a major priority for us, which they will see in the form of rewarding and regular dividends in the coming years.”
Strong financial performance
Borouge was able to deliver exceptional performance, achieving significant net profits of $1 billion in 2023. The “value enhancement program” implemented by the company achieved a positive financial impact of $607 million, equivalent to 28% of earnings before interest, taxes, depreciation and amortization for the year. 2023, and this is the highest percentage of impact in one year compared to any programs announced by their counterparts.
The company also recorded record sales volumes in polyolefin, reaching 5.1 million tons, thanks to achieving exceptional rates of production and the use of industry-leading assets, with the addition of 200,000 tons worth $106 million in earnings before interest, taxes, depreciation and amortization in 2023.
As a result of these initiatives, Borouge outperformed its regional and global peers by recording one of the highest EBITDA margins in the sector at 38%. By continuing to manage costs effectively and adapt to evolving market dynamics, Borouge's management expects to maintain these efficiencies and maximize value.
Dividend
Borouge will distribute a total dividend of $1.3 billion for the year 2023, after its shareholders approved during the annual general assembly meeting a final dividend of $650 million, at 7.94 fils (0.0794 dirhams) per share, bringing the per share’s dividend yield to 6.4%, according to Last closing stock price.
The company intends to allocate cash dividends worth $1.3 billion for the entire fiscal year 2024, at 15.88 fils (0.1588 dirhams) per share.
Digital transformation
Digital transformation and artificial intelligence constitute two fundamental pillars in supporting Borouge’s efforts towards continuing innovation, enhancing levels of efficiency, and creating tangible value across all its operations and activities, which paves the way for it to achieve the highest levels of operational excellence and continue developing innovative solutions, as “Borouge” has implemented many initiatives. In the field of digital technology and artificial intelligence, which achieved a value of $58 million until 2023.
The company intends to achieve many achievements, including achieving an additional value of approximately $280 million by 2028.
The Borouge Innovation Center also introduced 8 innovative products to the market during 2023, including an innovative solution for gas pipelines that is internationally recognized as it meets the highest standards of safety and reliability.
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