Borouge (BOROUGE) Q4 2024 earnings summary

Executive summary

• Achieved record production and sales volumes in Q4 and FY 2024, driving net profit to $1.24 billion, up 24% year-on-year, and supporting a $1.3 billion dividend.

• Maintained industry-leading EBITDA margins (40% in Q4, 41% for FY 2024) through operational efficiencies and high-value products.

• Robust cash flow of $1.57 billion in 2024, up 14% year-on-year, with free cash flow and cash conversion rates among the highest in recent years.

• Innovation and sustainability initiatives exceeded targets, with nine new products launched, including UAE's first healthcare grade, and inclusion in the S&P Global LargeMidCap ESG Index.

• Board and management remained stable, with only one Vice Chairman change during the year.

Financial highlights

• FY 2024 revenue reached $6.03 billion, up 4% year-on-year; Q4 revenue was $1.6 billion, up 8% year-on-year.

• Adjusted EBITDA for FY 2024 was $2.48 billion, up 14% year-on-year; Q4 Adjusted EBITDA was $650 million.

• Free cash flow for 2024 totaled $1.57 billion, up 14% year-on-year; cash conversion rate was 93% for the year.

• Net debt-to-EBITDA ratio stood at 1.1x at year-end; over $200 million in debt repaid during 2024.

• Final dividend payment of $650 million in April 2025, maintaining a $1.3 billion annual dividend.

Outlook and guidance

• 2025 expected to be a turnaround year due to scheduled Borouge 3 plant maintenance in Q2, impacting 320 kilotons of production.

• Q1 2025 sales volumes and pricing anticipated to be in line with Q1 2024; stable macroeconomic environment expected in core markets.

• CapEx in 2025 projected to rise above normalized guidance due to deferred maintenance and asset upgrades.

• Commitment to maintain $1.3 billion dividend payout in 2025, supported by strong cash generation.

• Borouge 2030 Strategy aims to ensure continued growth and resilience amid climate-related and market changes.