Finance
Omv Plastics Giant Will Greatly Boost Profits, CEO Says
Published by Global Banking & Finance Review®
Posted on March 31, 2026
3 min readLast updated: March 31, 2026
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Published by Global Banking & Finance Review®
Posted on March 31, 2026
3 min readLast updated: March 31, 2026
Add as preferred source on GoogleOMV CEO Alfred Stern says the newly formed Borouge International – combining OMV, ADNOC and Nova Chemicals – will drive profitability with higher margins (circa 25–26% EBITDA) and $500 million per year synergies, targeting an IPO in 2027.
By Alexandra Schwarz-Goerlich
VIENNA, March 31 (Reuters) - Giant new plastics group Borouge International represents a major step towards increased profitability, Alfred Stern, the CEO of Austria's OMV, told Reuters, adding a listing was expected in 2027.
The group, whose completion was announced on Tuesday, was formed through the combination of ADNOC and OMV's subsidiaries alongside the acquisition of NOVA Chemicals. It is expected to achieve above‑average margins and stronger price premiums compared with the wider market, Stern said.
Around 70% of production is based on low-cost raw materials, while premium products achieve price premiums of around 18% on average, Stern said.
Based on the existing companies, the combined Borouge International would have achieved an earnings before interest, tax, depreciation and amortisation margin of around 25% over the last five years.
The profits of Austrian oil, gas and chemicals group OMV beat market expectations when it reported earlier this year, boosted by its chemicals arm.
To launch Borouge International with a strong balance sheet and a solid investment-grade rating, OMV and ADNOC had said they will forgo half of their dividend in 2026.
Stern said this would not alter OMV's fundamental dividend policy.
Initially, the plan was to float Borouge International this month, around the time the company's creation was completed. The company denied a direct link between the delay and the conflict in the Middle East, saying it was a matter of choosing the best date for shareholders.
Stern said the company was now targeting an initial public offering in 2027 through a three-stage process.
Existing Borouge shares will be exchanged, then they will be listed in Abu Dhabi at the same time as a capital increase to allow its inclusion in the MSCI Emerging Markets Index.
Borouge International will be headquartered in Vienna, where a secondary IPO is planned.
A press statement on Tuesday said the merger was expected to generate synergies of at least $500 million, 75% of them within the first three years, but it did not give details on how that would be achieved.
Borouge International will have a future annual production capacity of more than 12 million metric tons of polyolefins, placing it in fourth place globally.
This year, a further 1.4 million tons of capacity is expected to come online through the commissioning of new plants in Abu Dhabi.
(Reporting by Alexandra Schwarz-Goerlich; writing by Maria Rugamer. Editing by Olaf Brenner and Barbara Lewis)
Borouge International is a new plastics group created by combining ADNOC and OMV subsidiaries with the acquisition of NOVA Chemicals.
The merger is expected to deliver above-average margins and generate at least $500 million in synergies, mostly within three years.
Borouge International is targeting an initial public offering in 2027 through a three-stage process.
OMV and ADNOC will forgo half their dividend in 2026 to ensure Borouge starts with a strong balance sheet and investment-grade rating.
Borouge International will be headquartered in Vienna, Austria, with plans for a secondary IPO there.
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