Borouge (BOROUGE) Pre-close/silent call summary

Executive summary

• Asset usage agreement for Borouge 4 grants full operational control and marketing rights, expected to deliver $400 million net profit over three years and 10% earnings accretion post-ramp-up.

• Shareholders benefit from a minimum dividend of 16.2 fils per share until at least 2030, ongoing share buybacks, and participation in group synergies.

• Borouge Group International received strong investment-grade credit ratings from S&P, Moody's, and Fitch, supporting access to diversified financing.

• Transaction timeline progressing, with M&A closing anticipated by end of March and $15.4 billion in committed financing secured; BGI listing and tender offer not before 2027.

• Borouge shares remain listed on ADX until then; Vienna dual listing planned after capital raise and MSCI inclusion.

Trading performance and revenue trends

• Operations remain normal and resilient despite geopolitical challenges, with no material impact on business, liquidity, or financial position.

• Polyolefins production and sales continue, with rerouting via alternative UAE ports to mitigate Strait of Hormuz disruptions.

• Full operational control of Borouge 4 units enables access to premium product volumes and positive EBITDA, net profit, and cash flow impact.

• Significant global and Asian price increases observed, with management implementing measures to ensure product delivery.

Profitability and margins

• Asset usage agreement for Borouge 4 projected to add $400 million cumulative net profit over three years and 10% earnings accretion post-ramp-up.

• Borouge will recognize all revenues from Borouge 4 sales, with no upfront consideration, preserving balance sheet flexibility.

• B4 usage agreement is projected to significantly uplift EBITDA and net profit, enhancing ROIC for shareholders.

• $7 billion+ EBITDA through cycle and $500 million annual synergy targets confirmed.