Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC and its affiliated companies, visited the headquarters of OMV in Vienna. They discussed ways to enhance the strategic partnership between the two sides.
The visit comes amid ongoing progress in establishing “Borouge International”, which is a new entity resulting from the integration of ADNOC’s and OMV’s stakes in Borouge and Borealis. The new group is set to acquire NOVA Chemicals, positioning it as the world’s fourth-largest producer of polyolefins.
This step marks a major milestone in ADNOC’s global growth strategy and its expansion in the petrochemicals sector. It aligns with the company’s ambitions to build innovation-driven, sustainable international partnerships.
During the visit, Dr. Sultan Al Jaber met with OMV CEO Dr. Alfred Stern, toured the company’s advanced facilities. He attended a presentation on how OMV leverages innovation and advanced technologies to create value and elevate sustainability standards.
Dr. Al Jaber affirmed that ADNOC is committed to deepening its strategic international partnerships to unlock new growth opportunities. That is in parallel with the progress being made in forming Borouge International. He noted the strong alignment between ADNOC and OMV in cultivating a corporate culture centered on collaboration and long-term growth.
He highlighted Borouge’s success in building a strong global presence in the petrochemicals industry. It achieved this through its exceptional operational performance, significant production capacity expansion, and diversified business portfolio. These strengths help meet growing global demand for essential chemicals, especially in key markets across the Middle East and Asia.
Dr. Alfred Stern emphasized the growing momentum of OMV’s 25-year partnership with ADNOC. He described the establishment of Borouge International as a key milestone in OMV’s transformation into an integrated company. OMV aims to meet top sustainability standards in chemicals, fuels, and energy.
He added that OMV, in collaboration with ADNOC and under the guidance of Dr. Al Jaber, is helping to build a global leader in polyolefins. This move aims to harness growth opportunities and deliver long-term value.
The formation of Borouge International is a pivotal step in ADNOC’s strategy to rank among the world’s top five chemical companies. It will also expand Borouge’s presence in global markets, especially in Europe and North America. ADNOC remains committed to sustainability and innovation.
This strategic partnership with OMV aims to deliver tangible, shared value. It reinforces both the UAE and Austria’s energy sectors.
Borouge International aims to generate greater shareholder value. Whereas, it intends to achieve its aim through better operational and commercial integration, its expanded market access, its accelerated innovation deployment, and broader use of advanced technologies.
Expectations indicate that the group will achieve an annual EBITDA of over AED 25.7 billion (USD 7 billion) over the business cycle. Based on these strong and sustainable cash flows, its dividend policy will target a payout of 90% of distributable profits. It may offer additional bonuses depending on free cash flow levels. Borouge will ensure a minimum annual dividend of 16.2 fils per share. This represents a 2% increase over Borouge’s targeted dividend per share from 2024 through 2030.
Reflecting its confidence in long-term growth, Borouge previously announced its intention to increase dividends to no less than 16.2 fils per share starting in 2025. This will offer an attractive yield of 6.2% based on the current share price, among the highest in the Abu Dhabi Securities Exchange.