Borouge PLC CEO to Argaam: Driving the Next Phase of Transformational Growth with Strategic Expansion and Innovation

Logo of Borouge PLC

Hazeem Al Suwaidi, CEO OF Borouge PLC, said that the company pushes ahead with its ambitious growth plans, including the Borouge 4 mega project, which is expected to increase production capacity by 28% and generate up to $1.9 billion (AED 7 billion) in annual revenue.

In an interview with Argaam, Al Suwaidi added Borouge recorded an outstanding $1.24 billion net profit for 2024, implying 24% year-on-year growth.

The Asia Pacific region accounted for 63% of Borouge's total sales volumes, underscoring its importance of global megatrends.

On dividends, the company’s CEO reaffirmed Borouge’s intention to distribute a final dividend of 7.94 fils per share in April 2025, bringing the total full-year 2024 dividend payout to $1.3 billion (AED 4.8 billion).

Here’s the full interview with Al Suwaidi:

What are the key factors that contributed to the increase in 2024 profits?

A: In 2024, Borouge recorded exceptional and sustained growth, with a notable increase in performance levels, solidifying its leading position in the petrochemical sector. This success was driven by high production rates, a strong international marketing network, and the utilization of cutting-edge, world-class technology solutions to innovate products that meet the evolving needs and demand of customers.

Borouge’s outstanding $1.24 billion (AED 4.55 billion) net profit for 2024, representing a 24% year-on-year increase, was driven by operational excellence, asset reliability, and strategic market positioning.

The company achieved record production levels of 5.2 million tonnes and annual sales volumes of 5.3 million tonnes, underpinned by the reliable and efficient performance of its world-class assets.

The company’s focus on proactive asset management and first quartile cost position contributed to a 41% EBITDA margin, outstripping its peers and reinforcing its strong profitability.

Borouge's strategic presence in high-growth markets across Asia, the Middle East, and Africa, along with its robust international sales and marketing network, further supported sales growth.

Q: What are your growth plans?

A: Borouge has ambitious growth plans, including the Borouge 4 mega project, which is expected to increase production capacity by 28% and generate up to $1.9 billion (AED 7 billion) in annual revenue.

The project will transform the scale of production, making Borouge the world's largest single-site polyolefin complex, enhancing the company's innovation capabilities and driving sales growth in major markets.

To further expand its capacity, Borouge is also revamping its second ethylene cracker unit (EU2), which will add 230,000 tonnes of production capacity and up to $250 million in annual revenue.

As part of its international global expansion plans, the company is continuing to progress with feasibility studies for a specialty polyolefins complex in Fuzhou, China.

Q: What are the markets that offer the most growth prospects for Borouge?

A: Borouge's strong profit growth last year was driven by record production and sales volumes, supported by strong demand for high-quality materials across various sectors, including infrastructure, healthcare, automotive, agriculture, and advanced packaging in growth markets across Asia, Africa, and the Middle East. Additionally, the company's products command premium pricing in international markets, with prices expected to rise further as economic conditions improve.

The Asia-Pacific is a region with significant growth prospects. China is the world’s single largest and fastest growing polyolefins market, and accounts for 40% of total global petrochemical consumption.

In 2024, the Asia Pacific region accounted for 63% of Borouge's total sales volumes, underscoring its importance of global megatrends, including population expansion, food waste and scarcity, water access and sanitation, circular economies and energy transition.

The Middle East and Africa also present substantial opportunities for the company, where it can leverage its strong market positioning and established customer relationships to drive growth.

Q: How is the company positioned vis-à-vis its peers and how does Borouge differentiate itself?

A: Borouge sets itself apart from its peers through cutting-edge technology, a highly differentiated product portfolio, and a strong financial position.

The company’s industry-leading 41% EBITDA margin and a high cash conversion rate of 93% in 2024 highlights the company’s best-in-class operational efficiency.

Moreover, Borouge’s strategic focus on growth includes increasing production within the UAE and exploring international expansion opportunities, further strengthening its competitive advantage.

Borouge's commitment to innovation-driven product differentiation has been a key factor in its success, particularly in high-value sectors such as infrastructure and advanced packaging, where its specialised solutions command premium pricing—$198 (AED 727) per tonne for polyethylene and $150 (AED 551) per tonne for polypropylene.

With a robust financial base and continued investment in advanced manufacturing capabilities, Borouge is well-positioned to sustain its competitive advantage and drive long-term growth.

Q: Will Borouge continue to pay dividends regularly?

A: Borouge remains committed to providing regular dividend payments to its shareholders and has distributed $2.9 billion (AED 10.74 billion) since its IPO in 2022.

The company has announced its intention to maintain a $1.3 billion (AED 4.8 billion) dividend, or 15.88 fils per share, for 2025, reflecting its strong financial performance and supported by Borouge's strong cash generation and robust liquidity position.

Borouge's management has reaffirmed its intention to distribute a final dividend of 7.94 fils per share in April 2025, bringing the total full-year 2024 dividend payout to $1.3 billion (AED 4.8 billion).