Interview: Abu Dhabi’s Borouge plans M&A with expansion in India, China, says CEO

Interview: Abu Dhabi’s Borouge plans M&A with expansion in India, China, says CEO

The Abu Dhabi-based specialty chemicals company Borouge Plc is in a very strong position financially to support growth opportunities either through organic expansion or through mergers and acquisitions (M&A), CEO Hazeem Sultan Al Suwaidi said after the company posted a net profit of $199 million for Q1 2023.

In an exclusive interview with Zawya, Al Suwaidi said, as mandated by the board earlier this year, Borouge is looking at acquisitions within its primary markets in India and China. “While we cannot disclose more details, we have been given a clear mandate by the board to look at organic and inorganic growth like M&A within our primary markets that complement our geographies and our product mixes and be value-accretive for the company.”

The company, which produces polyethylene and polypropylene, listed on ADX in June 2022 after raising over $2 billion. Post-IPO, it has disbursed $975 million as dividend for 2022 and is now committed to a $1.3 billion dividend payout this year.

Al Suwaidi declined to discuss if Borouge would finance any acquisitions internally. He said: "We have a very healthy balance sheet. And we are really very strong in our financial positions."

In its Q1 balance sheet, Borouge shows free cash flow of $377