ADNOC’s listed companies post combined AED89 billion H1 2024 revenue

ADNOC Group’s listed portfolio companies have reported strong financial results for the second quarter and first half of 2024. The six companies reported AED89 billion in combined revenue, AED28.4 billion of earnings before interest, taxes, depreciation and amortisation (EBITDA) and net profit of more than AED16 billion for the first half of 2024. The solid performance strengthens the foundation for sustained growth for the companies as they continue to execute their individual strategies and pursue multi-faceted initiatives to deliver profitable growth and attractive shareholder returns.

ADNOC Distribution recorded double-digit EBITDA and net profit growth in the second quarter of 2024. The Company reported a 15 percent) increase year-on-year (YoY to AED979 million in Q2 2024 EBITDA and a 12.9 percent YoY rise in net profit to AED623 million, while revenue increased 8 percent YoY to AED8.8 billion.

In H1 2024, ADNOC Distribution demonstrated growth in EBITDA of 16.2 percent YoY to AED1.9 billion, while net profit attributable to equity holders increased by 7.7 percent YoY to AED1.2 billion and revenue for the six-month period grew by 8.7 percent to AED17.5 billion. The H1 2024 dividend of AED1.3 billion is expected to be distributed to shareholders in October 2024, subject to the discretion of the Board of Directors.

Projecting a solid outlook for the full year 2024 and beyond, ADNOC Distribution is pushing ahead with its new five-year growth strategy with a focus on leveraging AI, technology, and innovation to unlock value. The Company is actively pursuing over 20 innovative AI projects and has established partnerships with leading global AI technology firms to maintain its market-leading position.

ADNOC Drilling delivered record financial results for the second quarter and first half of 2024, driven by fleet expansion and strong operational performance across all business segments, including Oilfield Services. Its Q2 and H1 revenue increased to AED3.4 billion and more than AED6.6 billion, up 29 percent and 26 percent YoY respectively. The strong top-line translated into record EBITDA both in the quarter and the first half, surging 37 percent YoY to AED1.7 billion and 34 percent YoY to AED3.3 billion respectively. Net profit for the quarter also grew, by 29 percent YoY, to AED1.1 billion, while for the first half, the figure stood at AED2.1 billion, up 28 percent YoY. The Company’s Board of Directors has approved an interim dividend of AED1.4 billion, +10 percent YoY under its new enhanced and progressive dividend policy, equivalent to 9.0468 fils per share.

On the back of exceptional market-beating first-half results, ADNOC Drilling increased its fiscal year 2024 and medium-term guidance. The Company will continue to deliver on its strategic initiatives and growth targets. It has been awarded a transformational AED6.2 billion contract to unlock the UAE’s world-class unconventional energy resources. It has also been awarded an AED2.7 billion contract for three newbuild island rigs, which will take the Company’s total fleet to 148 by 2026. Furthermore, ADNOC Drilling’s strategic joint venture, Enersol, has announced a number of investments. The Company is well-positioned to benefit from Enersol’s AI, digitisation and advanced technology acquisitions.

ADNOC Gas reported robust Q2 results, posting a record adjusted net income of AED4.4 billion, a 21 percent YoY improvement that exceeded market expectations. Revenues for the Q2 period of AED22.3 billion are an increase of 13 percent YoY, while EBITDA growth outpaced revenue improvement during the quarter, reaching AED7.7 billion, an 18 percent YoY increase.

In H1 2024, the Company’s revenues reached AED44.4 billion while it reported EBITDA of AED15.3 billion and net income of AED8.7 billion. The Board of Directors has approved an interim dividend of AED6.3 billion, which equals a dividend per share of 8.164 fils, scheduled for distribution in September. The Company intends to distribute a total dividend of AED12.5 billion for the full year 2024.

ADNOC Gas continues to make significant progress with its five-year (2023 to 2027) AED48.5 billion strategic and growth project portfolio. The Company has transferred ownership of the AED8.8 billion gas pipeline extension project (ESTIDAMA) to ADNOC, significantly optimising ADNOC Gas’ capital efficiency. It will continue to manage and operate the project, allowing the Company to reach new customers in the Northern Emirates. ADNOC also announced recently the Final Investment Decision (FID) for the Ruwais LNG project as well as the EPC award and the International Energy partners joining as minorities. ADNOC Gas is managing the design and construction and has reaffirmed its intention to become an equity partner, and operator, of Ruwais LNG by acquiring ADNOC’s stake.

ADNOC L&S reported impressive financial results for the second quarter and first half of the year. The Company’s Q2 revenue increased by 42 percent YoY to AED3.3 billion with EBITDA growing 40 percent YoY to AED1.1 billion. Net profit for the second quarter grew 28 percent YoY to AED764 million.

For H1 2024, ADNOC L&S recorded a net profit of AED1.5 billion, an increase of 31 percent on H1 2023. The Company reported revenues of AED6.4 billion in the same period, up 42 percent on H1 2023. EBITDA rose by 42 percent to AED2.2 billion driven by robust performance across all business segments. The Company’s dividend policy remains unchanged with a projected total dividend payable for 2024 of AED1 billion (5 percent increase from 2023 annualised dividend), payable 50 percent for 1H 2024 in Q4 2024, subject to approvals.

Following its strong performance, ADNOC L&S revised its full-year 2024 guidance upwards. The Company continues to accelerate the delivery of its transformational growth strategy with value-accretive strategic investment targets of over AED18.3 billion to be realised by 2028. During the second quarter, it agreed to acquire Navig8, an international shipping pool operator and commercial management company. ADNOC L&S awarded up to AED9.2 billion in shipbuilding contracts for the construction of new LNG carriers, while its strategic joint venture AW Shipping signed contracts worth AED7 billion for the construction of new vessels.

Borouge continued its accelerated growth journey by outperforming analyst estimates as it registered a 33 percent YoY increase in second-quarter net profit to AED1.1 billion, powered by higher sales and cost efficiencies as the company recorded its highest-ever production volumes. EBITDA surged 18 percent YoY to AED2.3 billion in Q2, underpinned by a 6 percent increase in revenue, which reached AED5.5 billion.

For the first half of 2024, Borouge reported a net profit of AED2.1 billion, an increase of 35 percent YoY, with adjusted EBITDA increasing 21 percent to AED4.3 billion as revenue stood at AED10.3 billion. The Company intends to maintain an AED4.8 billion dividend for 2024, or 15.88 fils per share and distribute an interim dividend of 7.94 fils per share upon shareholder approval.

Looking ahead, Borouge projects that strong production levels and sales volumes will sustain a positive momentum, as it aims to drive accelerated growth through capacity expansion both in the UAE and internationally, optimal productivity and a focus on high-value customer segments, with a new speciality polyolefins complex planned in China and its Borouge 4 facility mega project, which will increase production capacity by 28 percent, reaching over 70 percent completion. Central to Borouge’s future growth ambitions is its Artificial intelligence, Digitalisation and Technology (AIDT) strategy, which is expected to deliver significant value over the next few years through the implementation of a broad portfolio of projects spanning health and safety, sales, sustainability, and innovative product development.

Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, reported Q2 2024 revenues of AED1.8 billion, adjusted EBITDA of AED571 million, and adjusted net profit attributable to shareholders of AED55 million. The Company reported H1 2024 revenues of AED3.8 billion, with an adjusted EBITDA of AED1.4 billion, and an adjusted net profit of AED493.6 million. Fertiglobe intends to distribute H1 2024 dividends in October 2024 subject to its Board’s approval in September.

Fertiglobe continues to focus on value-accretive growth projects, including taking the Final Investment Decision on the TA’ZIZ 1 mtpa low-carbon ammonia plant in the UAE (30 percent owned by Fertiglobe). The Company was chosen as the winning bidder in a first-of-its-kind H2Global auction for a contract value of up to AED1.6 billion, securing a supply of renewable ammonia out of Egypt at a delivered price of AED4,010 per ton until 2033. It also continues to prioritise its Manufacturing Improvement Plan, which aims to generate at least AED367 million in incremental annual EBITDA by the end of 2025 compared to 2023.