Abu Dhabi: Borouge Plc, a petrochemicals company known for its polyolefins solutions, will seek shareholder approval for a share buyback and final 2024 dividend at its Annual General Meeting (AGM) on 7th April. The company is considering purchasing up to 2.5 percent of its issued share capital.
According to Emirates News Agency, this proposal follows Borouge's strong 2024 financial performance, which saw a 24 percent increase in net profit to $1.24 billion and free cash flow generation of approximately $1.6 billion. This was driven by record production and sales volumes.
The share buyback proposal indicates the company's confidence in its future growth prospects and its commitment to providing returns to shareholders. The buyback, subject to shareholder and regulatory approvals, would occur through open market transactions following ADX regulations, with the number of shares repurchased dependent on market conditions.
Borouge CEO Hazeem Sultan Al Suwaidi stated that the buyback aims to enhance shareholder value and reflects the company's strong financial position. He emphasized that the company is well-positioned to maximize returns while pursuing the Borouge 4 expansion and other strategic initiatives.
The Board of Directors will oversee the share buyback, which may be modified or discontinued at any time. The proposed buyback would involve up to 2.5 percent of the company's shares.
In addition to the share buyback, shareholders will vote on the final 2024 dividends of 7.94 fils per share, to be distributed on 28th April 2025. This brings the total 2024 dividend payout to $1.3 billion or 15.88 fils per share.
Borouge is poised to strengthen its position in the industry and advance its growth ambitions.