VIENNA (Reuters) -Austrian oil and gas group OMV is amending its dividend policy to include payouts from its stake in merged chemicals business Borouge that is due to be formed next year, the company
OMV Updates Dividend Strategy Following Borouge Chemicals Merger
Overview of OMV's New Dividend Policy
VIENNA (Reuters) -Austrian oil and gas group OMV is amending its dividend policy to include payouts from its stake in merged chemicals business Borouge that is due to be formed next year, the company said on Friday.
Details of the Borouge Merger
Abu Dhabi National Oil Company and OMV agreed in March to merge their polyolefin businesses to create a chemicals powerhouse, Borouge Group International, with an enterprise value of $60 billion.
Expected Dividend Timeline
The first dividend under the new formula will be paid out in 2027.
Impact on Shareholders
"OMV will now distribute 50% of BGI dividends attributable to OMV plus 20–30% of Operating Cash Flow excluding BGI dividends attributable to OMV," the company said in a statement, adding that had the formula been applied to this year's payout, it would have increased it by 6% on a like-for-like basis.
The Borouge deal is expected to close in the first quarter of 2026.
"By linking the dividend to the performance of BGI, we are ensuring that our shareholders participate directly in the success of BGI, while maintaining our commitment to attractive and reliable returns," OMV CEO Alfred Stern said in the statement issued ahead of OMV's capital markets day on Monday.
(Reporting by Alexandra Schwarz-Goerlich and Francois Murphy; Editing by Lisa Shumaker)
