ADNOC-backed petrochemicals firm Borouge has reported a net profit of $281 million for the first quarter of 2025, up slightly from $273 million in the same period last year. Despite the annual improvement, the figure represents a quarter-on-quarter decline from $331 million in Q4 2024, reflecting the usual volatility in global petrochemical markets.
The company, currently undergoing a significant corporate transformation, maintained a stable profit margin of 20% over the past two quarters—signaling continued operational efficiency and cost control amid evolving market conditions.
Foundation for Global Expansion
Borouge’s latest financial results come as it lays the groundwork for a landmark consolidation move with Austrian-based Borealis and the planned acquisition of US-based Nova Chemicals. These steps are aimed at forming Borouge Group International, a new entity valued at $60 billion, positioned to be a leading global petrochemicals powerhouse.
According to a company statement: “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.”
Bigger Dividends Ahead
In line with the group’s ambitious transformation, Borouge has also committed to higher shareholder returns. Once the new structure is in place, shareholders are set to benefit from an estimated total dividend of $2.2 billion, with a minimum annual payout of 16.2 fils per share from 2026 through 2030. This equates to a 6.3% annual dividend yield, based on a planned 90% net income payout ratio.
The combined dividend payouts from Borouge and the future Borouge Group International represent a cumulative 38% return through 2030, making the restructuring not only strategic but also financially compelling for investors.
Hazeem Sultan Al Suwaidi, CEO of Borouge, expressed confidence in the company’s direction, citing the company’s strong operational performance as a foundation for future growth.
“Borouge is firmly positioned on an accelerated growth trajectory having demonstrated remarkable resilience and operational excellence over the past couple of years,” he said.
“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.”
As ADNOC and co-investor OMV move forward with the integration process, market observers are closely watching how Borouge balances near-term profitability with long-term strategic ambitions on the global stage.
