Borouge (BOROUGE) Pre-close/silent call summary

Executive summary

• Announced a new asset usage agreement for Borouge 4, granting full operational control and marketing rights, projected to deliver $400 million cumulative net profit over three years and significant earnings accretion.

• Shareholders benefit from a minimum dividend of AED 0.162 (16.2 fils) per share until at least 2030, ongoing share buybacks, and participation in group synergies.

• Transaction timeline anticipates M&A closing and debt take-out by end of March, with BGI listing and tender offer not before 2027.

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

Trading performance and revenue trends

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

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

• Significant price increases observed globally and in Asia, with robust measures in place to ensure product delivery.

• Alternative logistics, including trucking to various UAE ports, are being used to maintain export volumes.

Profitability and margins

• Asset usage agreement projected to deliver $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.

• Previously announced $500 million annual EBITDA synergies and $7 billion+ EBITDA through cycle remain confirmed.

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