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Austria's OMV amends its dividend policy in light of Borouge Chemicals deal

The Austrian oil-and-gas group OMV has amended its dividend policy in order to include payouts resulting from its stakes in the merged chemicals company Borouge, which is expected to be formed by next year. Abu Dhabi National Oil Company (ADNOC) and OMV announced in March that they would merge their polyolefin business to form Borouge Group, an international chemicals giant with a $60 billion enterprise value.

The first dividend will be paid in 2027 under the new formula.

The company announced that it will distribute 50% of BGI Dividends attributable OMV, plus 20-30% Operating Cash Flow, excluding BGI Dividends attributable OMV. If the formula had been applied to the payout for this year, it would have increased the amount by 6%, on a similar basis.

The Borouge transaction is expected to be completed in the first quarter 2026.

Alfred Stern, OMV CEO, said that by linking the dividend with the performance of BGI we ensure that our shareholders directly participate in the success BGI while maintaining our commitment of attractive and reliable returns. This statement was released ahead of OMV’s capital markets event on Monday. (Reporting and editing by Alexandra Schwarz Goerlich and Francois Murphey; Lisa Shumaker, editor)

(source: Reuters)