OMV's €20B valuation soars despite Borouge IPO delay and dividend cut
OMV's market value reached around 20 billion euros in early 2026, boosted by a 17% share price rise this year. The increase followed strong financial results, including a 71% profit surge in its chemicals division and an adjusted net income of 1.94 billion euros. However, the company's shares dipped after announcing a delay to the planned IPO of Borouge Group International (BGI).
The delay pushes BGI's listing on the Abu Dhabi Securities Exchange to no earlier than 2027, depending on market conditions. As a result, OMV's expected distributions from the venture drop from $500 million to $250 million in 2026, cutting its per-share dividend by €0.60 to €0.70. Despite this, the merger of Borealis, Borouge, and Nova Chemicals into BGI remains on schedule, with operational integration set to finish by the end of March.
Once complete, BGI will become the world's fourth-largest polyolefins producer, with an annual capacity of 13.6 million tons. OMV and ADNOC's XRG will each hold a 50% stake in the new entity, which has already secured preliminary investment-grade ratings from S&P, Moody's, and Fitch. To maintain this rating, both companies have agreed to explore further shareholder support in 2027. A usage agreement for the new Borouge 4 production complex has also been signed, projecting a cumulative net profit of around $400 million over three years. The merger further guarantees OMV a minimum annual dividend of roughly $1 billion from BGI, reinforcing its financial outlook despite the IPO setback.
The IPO delay reduces OMV's short-term payouts but keeps the broader merger on track. With BGI set to rank among the top global polyolefins producers, the venture's long-term financial commitments remain intact. The company's share price, while affected by the announcement, had previously hit a 52-week high on the back of its strong performance.
