ADNOC Gas and its subsidiaries recently held their first annual general meeting since the company’s landmark initial public offering (IPO) in March 2023. During the meeting, shareholders approved the board of director‘s proposal to distribute the 2023 dividend of $3.25 billion. The inaugural interim cash dividend of $1.625 billion was paid in December 2023 and another $1.625 billion is scheduled for distribution in the second quarter of 2024.
Strong financial performace
In 2023, ADNOC Gas recorded impressive financial results, with revenues reaching $22.7 billion and net income standing at $4.7 billion. The company’s share price surged by 30 percent from its listing date. This drove its market capitalization to $65 billion, ranking it among the top 20 oil and gas companies globally. Moreover, shareholders enjoyed a total return of 35 percent in 2023. Besides, the company intends to progressively increase the dividend it pays its shareholders by 5 percent year-on-year over the next four years. This underscores the strength and visibility of ADNOC Gas’ future cash flows.
Strategic investments
ADNOC Gas said it remains committed to expanding its global footprint and exploring new revenue streams. With investments totaling $4.9 billion in 2023 to expand processing capacity and reach more customers, the company aims to increase sales volumes by up to 20 percent. Moreover, strategic LNG export agreements worth up to $12 billion underscore ADNOC Gas’ commitment to capitalizing on the growing global demand for LNG as a transition fuel.
Looking ahead, ADNOC Gas plans to invest over $13 billion between 2024 and 2029 in domestic and international growth opportunities. Moreover, it expects to increase its earnings before interest, taxes, depreciation, and amortization (EBITDA) by up to 40 percent by 2029. In addition, ADNOC Gas is looking to increase its LNG export volumes in a growing global market. Therefore, it aims to double its LNG production capacity by 2028 through the acquisition of 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,” stated Dr. Ahmed Alebri, CEO of ADNOC Gas.
Operational efficiency and innovation
In 2023, ADNOC Gas made significant strides in operational efficiency and innovation. The deployment of cutting-edge artificial intelligence (AI) technologies, including machine learning and computer vision, enhanced cost efficiency and employee safety. A groundbreaking ‘proof of concept’ pilot using advanced robotics for continuous monitoring and inspection of facilities improved equipment availability and employee safety, creating up to $1 billion in value since 2016.
Looking forward, ADNOC Gas aims to further leverage AI and other new technologies to drive cost efficiencies and reliability. Over the next five years, the company expects to save up to $400 million annually and deliver significant operational benefits. Moreover, it seeks to leverage lower-carbon solutions and drive accelerated growth with a focus on decarbonization.
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