ADNOC Gas announces $3.25 billion dividend and growth strategy

ABU DHABI, UAE: In its first Annual General Meeting post-IPO, ADNOC Gas shareholders approved a $3.25 billion dividend for 2023, with a final payment of $1.625 billion due in Q2 2024. The company revealed plans to increase dividends by 5% annually over the next four years, reflecting confidence in its revenue prospects.

The company’s growth strategy includes a $13 billion investment in global opportunities, aiming to enhance EBITDA by up to 40%. This is supported by ADNOC’s feedstock expansion and the potential acquisition of the Ruwais LNG megaproject.

ADNOC Gas is set to capitalize on the rising demand for natural gas with a focus on decarbonization, digital transformation, and AI innovation. The company’s 2023 milestones featured significant AI deployments, enhancing safety and efficiency, and a pioneering robotics pilot for facility monitoring.

With a commitment to operational excellence and technological advancement, ADNOC Gas is poised for accelerated growth and substantial economic contributions to the UAE.

His Excellency Dr. Sultan Ahmed Al Jaber, Chairman of ADNOC Gas, said: “ADNOC Gas recorded robust financial and operational results in 2023, has delivered on its dividend promise to shareholders, and is progressing several significant projects that will accelerate its future growth. The Company saw its share price surge 30% from its listing date in March 2023 to year-end, driving its market capitalization to $65 billion and ranking us among the Top 20 Oil & Gas companies worldwide.

Total shareholder returns, including the annual dividend, reached 35% in 2023. These exceptional achievements in a volatile gas market underscore our ability to deliver robust financial performance and growth throughout the commodity cycle.”

“In 2023, we made substantial investments to advance our growth strategy, awarding contracts worth $4.9 billion to expand our processing capacity and reach more customers. These projects will provide additional sales volumes of up to 20%. Our international sales momentum grew in 2023 with the signing of liquefied natural gas (LNG) export agreements worth up to $12 billion, securing our returns in the coming years and capitalizing on the increasing global demand for LNG as a transition fuel.”

“Between 2024 and 2029, we plan to invest over $13 billion in domestic and international growth opportunities, with our predictable margin business expected to increase our EBITDA by up to 40% by 2029. In addition, we are looking to increase our LNG export volumes in a growing global market. Our aim is to acquire the new Ruwais LNG plant and more than double our LNG production capacity by 2028.”

ADNOC Gas delivered strong financial results in 2023, reporting revenues of $22.7 billion and a net income of $4.7 billion, exceeding market expectations and setting the foundation for further growth in 2024 and beyond. The Company intends to progressively increase the dividend it pays its shareholders by 5% year-on-year over the next four years, underscoring the strength and visibility of ADNOC Gas’ future cash flows.

Dr. Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented: “Our strong financial performance in 2023 underpins our confidence to expand our global footprint and explore new revenue streams that hold the potential to unlock additional value for shareholders. We are planning to more than double our LNG production capacity by strategically acquiring the new Ruwais LNG plant. We aim to expand internationally by acquiring new positions in the gas value chain, targeting opportunities in Europe, India, China and South-East Asia if they add value to our business.”

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