ADNOC's listed companies post strong Q1 results with over $2.3 billion net profit
26 May 2025 10:29
ABU DHABI (WAM) ADNOC Group's publicly traded portfolio companies combined to deliver over $2.3 billion (Dh8.4 billion) in first quarter net profit, reflecting their resilient business models and ability to generate robust profits in evolving market conditions.Each of the six companies delivered strong financial results in the first quarter, alongside clear progress on strategic priorities aimed at driving profitable growth.ADNOC Distribution delivered first quarter net profit of $174 million (Dh639 million), up 16% year-on-year, and its highest-ever first quarter EBITDA behind record Q1 fuel sales and strong performance in non-fuel retail.The company added 20 new service stations to its network in the quarter, bringing the total to 915 and putting it on track to meet its target of 40-50 new stations by the end of 2025.ADNOC Distribution also reaffirmed its commitment to its dividend policy, aiming for an annual payout of $700 million (Dh2.57 billion) equivalent to (20.57 fils per share) or at least 75% of net profit, whichever is higher, through 2028.ADNOC Drilling reported strong first quarter results with revenue up 32% to $1.17 billion (Dh4.30 billion) year-on-year (y-o-y), EBITDA up 22% to $533 million (Dh1.96 billion) y-o-y and net profit increasing 24% to $341 million (Dh1.30 billion) y-o-y.The company also announced new contract awards worth over $2.4 billion (Dh8.8 billion) providing unmatched multi-year earnings visibility and adding to its multi-billion-dollar revenue pipeline.Additionally, ADNOC Drilling's Board of Directors approved quarterly dividend distributions, resulting in a payment of $217 million (Dh796 million) for the first quarter of 2025.For 2025, ADNOC Drilling expects to deliver revenues between $4.60 - 4.80 billion (Dh16.9 – 17.6 billion) and net profit between $1.35 - 1.45 billion (Dh4.95 – 5.32 billion).ADNOC Gas reported a net income of $1.27 billion (Dh4.7 billion) for Q1 2025, up 7% year-on-year, and EBITDA of $2.16 billion (Dh7.9 billion), up 4% year-on-year, driven by increased domestic gas demand and efficient management of the planned shutdown programme, which boosted processing capacity.The company continues to invest to achieve its longer-term EBITDA growth target of over 40% between 2023 and 2029. Significant LNG supply agreements worth $9 billion (Dh30.24 billion) were signed with Indian Oil Corporation and JERA Global Markets, and capital expenditures increased by 43% year-on-year.On May 13, ADNOC Gas was selected for inclusion in the MSCI Emerging Markets Index after meeting the necessary criteria. The inclusion will take effect from 2nd June, and is expected to increase cash inflows by between $300-$500 million (Dh1.0 – 1.8 billion) and attract more international institutional investors.ADNOC Logistics & Services plc (ADNOC L&S) reported strong Q1 2025 financial results with a 41% increase in revenue to $1.2 billion (Dh4.34 billion) and a 20% rise in EBITDA to $344 million (Dh1.26 billion), backed by strong performance across all business segments. The results underpin the resilience of the company's diversified business model where growth from the Integrated Logistics segment offset lower seasonal shipping rates.ADNOC L&S maintained both its 2025 net income and EBITDA guidance and its medium-term guidance, reflecting its continued positive long-term growth and strategic expansion. The Company's 2025 annual dividend is expected to grow 5% in line with its progressive dividend policy.Borouge reported strong Q1 2025 results with net profit of $281 million (Dh1.03 billion), driven by year-on-year increases of 10% for sales volumes and 7% for production volumes.Revenue grew by 9% year-on-year to $1.42 billion (Dh5.21 billion), with EBITDA of $564 million (Dh2.07 billion), maintaining industry-leading margins of 40%.The company also announced it has purchased over 89 million of its own shares since launching its share buyback programme in April, reflecting its strong confidence in its future prospects.Borouge will increase its 2025 annual dividend to 16.2 fils per share, which is expected to be maintained until 2030 by Borouge Group International (BGI) following completion of the BGI transactions that are expected to close in Q1 2026.Fertiglobe announced strong Q1 2025 results, with revenues up 26% and adjusted EBITDA rising 45% year over year. Adjusted net profit would have been up 306% excluding last year's one-off foreign exchange revaluation gain, driven by higher urea prices and operational gains.The company also launched its 'Grow 2030 Strategy' to deliver $1 billion in EBITDA by 2030, focusing on operational excellence, customer proximity product expansion, and disciplined low-carbon ammonia growth.Fertiglobe's optimisation initiatives are enhanced by ADNOC's full support to integrate and optimise $15 - 21 million (Dh55.1 – 77.1 million) of the company's fixed costs in addition to $10 million (Dh36.7 million) in annual interest savings via direct and indirect financing support. Combined, these would lead to ~13-16% after tax earnings per share growth by the end of 2025.
The company also reaffirmed its dividend policy to substantially pay out all excess free cash flows after providing for growth opportunities, and in April initiated a share buyback programme to repurchase up to 2.5% of its outstanding shares.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
a day ago
- Zawya
ADNOC Gas joins MSCI Emerging Market Index
ADNOC Gas has been added to the MSCI Emerging Markets Index, becoming the third ADNOC stock to join the global benchmark that includes the most prominent publicly listed companies from 24 emerging market countries. ADNOC Gas will be the largest addition to the Index by market capitalisation and joins ADNOC Distribution and ADNOC Drilling which were added to the benchmark in 2021 and 2024, respectively. The company's inclusion follows its successful $2.84 billion (AED10.3 billion) marketed offering of 3.1 billion shares in February, which increased the number of shares available to the public by 80% and helped the stock successfully meet key eligibility criteria for entry into the Index. This marks a significant milestone in the ADNOC Gas's ongoing efforts to enhance its global investment profile, attract a broader and more diversified investor base and improve liquidity of its shares. Through their inclusion in the MSCI Index, the three ADNOC Group companies collectively raise both ADNOC's and the Abu Dhabi Securities Exchange's (ADX) global investment profile, while enhancing liquidity in the UAE market and further cementing the UAE's position as an attractive destination for foreign investment. As with ADNOC Distribution and ADNOC Drilling's addition to the Index, ADNOC Gas experienced a surge in trading on the final day before its index inclusion, attracting $469 million (AED1.7 billion) in capital inflows. The inclusion of ADNOC Gas in the Index also marks another milestone in ADNOC's efforts to foster growth of the UAE's capital market, which began in 2017 with the public listing of ADNOC Distribution on the ADX. Since then, ADNOC has brought another five of its subsidiaries to the public market, with a current combined market cap of around $140 billion (AED508 billion). ADNOC's growing listed company portfolio is providing attractive opportunities for global investment into the UAE, further integrating the UAE's capital markets into the global financial ecosystem.
Tahawul Tech
2 days ago
- Tahawul Tech
Sariya Information Technology partners with Keystrike to expand cybersecurity solutions
Sariya Information Technology, a leading cybersecurity VAD, today announced the signing of a comprehensive distribution agreement with Keystrike, establishing a strategic partnership to deliver advanced security technologies throughout the Middle East region. Partnership Overview Under the terms of this agreement, Sariya Information Technology will serve as an official regional distributor for Keystrike's cybersecurity solutions, bringing cutting-edge security technologies to organisations across the Middle East. This partnership combines Sariya's deep regional market expertise with Keystrike's innovative security platforms to address the growing cybersecurity needs of enterprises in the region. Market Impact The Middle East cybersecurity market continues to experience rapid growth as organisations increasingly prioritize digital security infrastructure. This distribution partnership positions both companies to capitalise on expanding market opportunities while providing local organisations with access to world-class security solutions and support. 'We are excited to partner with Keystrike to bring their niche yet simple cybersecurity solutions to our regional market', said Nirmal Menon, Business Unit Manager at Sariya Information Technology. 'This agreement aligns with our commitment to providing our channel partners with the most effective security technologies available, backed by local expertise and support'. 'The Keystrike solutions fit very well with other cyber security solutions on the market. It is important for us to team up with trusted partners like Sariya-IT where they bundle our solutions with their existing products, providing a total solution for the clients. We are very excited about our cooperation on the mission to make our clients safe from cyber threats', said Leifur Saemundsson, Keystrike's general manager for the Middle East and Africa region. Technology Overview Modern breaches typically start by attacking the weakest link in every system, the people. Once successful they can impersonate the legitimate user once he opens a session to the servers and then the APTs can do whatever the user can do, bypassing MFAs, PAMs etc! Keystrike Solution: Making sure the commands received by the servers originate from the legitimate user by keystroke attestation, successfully blocking lateral movement, identifying and blocking APTs on their attempts to move laterally, securing the server and reporting to your SIEM tool that this workstation is compromised! Through this partnership, system integrators throughout the Middle East can help their clients to identify the APT compromised workstations on their first attempt to move laterally! Strategic Benefits The distribution agreement enables both organisations to leverage their respective strengths, with Sariya Information Technology's established regional presence complementing Keystrike's technology innovation capabilities. This collaboration is expected to accelerate market penetration and enhance customer satisfaction across the Middle East cybersecurity landscape. 'Partnering with Sariya Information Technology represents a significant step in expanding our Middle East presence', commented Saemundsson. 'Their proven track record in the region and commitment to customer success makes them an ideal partner for delivering our solutions to this important market'. Image Credit: Stock Image
Al Etihad
2 days ago
- Al Etihad
UAE stock markets report steady gains in May despite global volatility
1 June 2025 19:12 A. SREENIVASA REDDY (ABU DHABI)The UAE equity markets closed May 2025 on a positive note, with both the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) recording gains, despite volatility in global markets, according to the monthly market report from Kamco combined market capitalisation of the two bourses rose as investors gained confidence from steady earnings, increased liquidity, and sector-specific momentum. The report highlights that both exchanges remained among the more resilient performers in the GCC during the month.'Equity markets in the GCC region remained volatile during May replicating the trend in the broader global financial markets. Almost all markets in the region witnessed gains during the month, but a 5.8% decline in the TASI (Saudi index) dragged the MSCI GCC index into the red with a decline of 2.6% during the month,' Kamco Invest ADX General Index registered a monthly gain of 1.6%. The index closed at 9,685.1 points in May, bringing its year-to-date performance for 2025 to 2.8%.According to Kamco Invest: 'Sectoral performance on the exchange was evenly split, with five out of 10 sector indices registering declines, while the remaining five recorded gains.'The overall gain in the FTSE ADX General Index was driven by advances in the Energy, Financial, Real Estate, and Utilities Indices. The Energy Index posted the steepest gain, climbing 4.4%, as two out of the four constituent companies recorded share price increases, led by a 7.7% rise in ADNOC Distribution's share price during the month. The Utilities Index followed closely with a gain of 3.8%, supported by a 3.8% share price increase in its sole constituent company, Abu Dhabi National Energy Co, during terms of monthly stock performance, Presight AI led the gainers' chart for May-2025 with a substantial 32.5% increase in its share price. It was followed by Phoenix Group and Sudatel, which recorded gains of 18.4% and 15.9%, respectively. On the decliners' side, Al Wathba National Insurance Company registered the sharpest fall, with a 24.8% drop in its share price during May, followed by Insurance House Co. and United Arab Bank, which posted declines of 13.1% and 10.7%, activity on the exchange was robust but subdued during May. Total volume of shares traded declined by 8.1%, reaching 6.9 billion shares, compared to 7.6 billion shares in April. Conversely, the total value of traded shares rose by 18.2%, amounting to Dh30.6 billion in May, up from Dh25.9 billion in the previous month. ADNOC Gas topped the most active stocks by volume with 1.4 billion shares traded, followed by Multiply Group and Phoenix Group, which recorded trading volumes of 1 billion shares and 499.5 million shares, respectively. In terms of value traded, ADNOC Gas also led with Dh4.6 billion worth of shares changing hands, followed by International Holdings Company and Al Dar Properties, with traded values of Dh 4.56 billion and Dh2.8 billion, DFM General Index recorded its second consecutive monthly gain in May, rising by 3.3% to close the month at 5,480.5 points. This increase brought the index's year-to-date performance for 2025 to 6.2%.Sectoral performance was entirely positive, with all eight sector indices posting gains during the month. The Materials Index posted the steepest gain at 9.1%, followed by the Industrial Index, which advanced 6.2%. The Financial Index improved by 4.4% in May, mainly supported by double-digit gains in several key companies within the sector, including Dubai Insurance Co (+24.8%) and Naeem Investment Holding (+14.8%). Meanwhile, the Real Estate Index — the largest weighted index among the DFM indices — registered a marginal uptick of 0.1% during the month. Slight share price increases in companies such as Tecom (+1.6%) and Emaar Properties (+0.4%) contributed to the overall marginal improvement of the Real Estate Index. The Utilities Index rose by 0.8% with a 1.9% increase in the share price of DEWA helped offset a 5.0% decline in Empower and a 1.1% drop in to Bloomberg's monthly stock performance data, Amlak Finance led the list of top gainers in May with a notable 30.2% surge in its share price. It was followed by Dubai Insurance and Naeem Investment, which recorded gains of 24.8% and 14.8%, respectively. Trading activity on the exchange was mixed in May. The total volume of shares traded declined by 3.6%, reaching 4.5 billion shares compared to 4.7 billion shares in April. In contrast, the total value of shares traded rose by 17.5% to Dh 15.1 billion in May against Dh12.8 billion in April. DEWA topped the monthly trading volume chart, with 994.1 million traded shares followed by Salik and Talabat at 465.7 million and 397.4 million shares, respectively. In terms of trading value, Emaar Properties led with Dh 3.1 billion worth of shares traded, followed by DEWA and Salik at Dh 2.7 billion and Dh 2.6 billion, respectively.
