Latest news with #AdnocDistribution
Trade Arabia
a day ago
- Business
- Trade Arabia
Adnoc Gas joins MSCI Emerging Market Index
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 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 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.
Gulf Today
26-05-2025
- Business
- Gulf Today
Adnoc's listed firms post strong results with over $2.3 billion net profit
Adnoc Group's publicly traded portfolio companies combined to deliver over $2.3 billion (Dhs8.4 billion) in first quarter (Q1) 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 (Dhs639 million), up 16 per cent 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 (Dhs2.57 billion) equivalent to (20.57 fils per share) or at least 75 per cent of net profit, whichever is higher, through 2028. Adnoc Drilling reported strong first quarter results with revenue up 32 per cent to $1.17 billion (Dhs4.30 billion) year-on-year (y-o-y), EBITDA up 22 per cent to $533 million (Dhs1.96 billion) y-o-y and net profit increasing 24 per cent to $341 million (Dhs1.30 billion) y-o-y. The company also announced new contract awards worth over $2.4 billion (Dhs8.8 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 (Dhs796 million) for the first quarter of 2025. For 2025, Adnoc Drilling expects to deliver revenues between $4.60 - 4.80 billion (Dhs16.9 - 17.6 billion) and net profit between $1.35 - 1.45 billion (Dhs4.95 - 5.32 billion). Adnoc Gas reported a net income of $1.27 billion (Dhs4.7 billion) for Q1 2025, up 7 per cent year-on-year, and EBITDA of $2.16 billion (Dhs7.9 billion), up 4 per cent 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 per cent between 2023 and 2029. Significant LNG supply agreements worth $9 billion (Dhs30.24 billion) were signed with Indian Oil Corporation and JERA Global Markets, and capital expenditures increased by 43 per cent year-on-year. On 13th May, 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 (Dhs1.0 - 1.8 billion) and attract more international institutional investors. Adnoc Logistics & Services (Adnoc L&S) reported strong Q1 2025 financial results with a 41 per cent increase in revenue to $1.2 billion (Dhs4.34 billion) and a 20 per cent rise in EBITDA to $344 million (Dhs1.26 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 per cent in line with its progressive dividend policy. Borouge reported strong Q1 2025 results with net profit of $281 million (Dhs1.03 billion), driven by year-on-year increases of 10 per cent for sales volumes and 7 per cent for production volumes. Revenue grew by 9 per cent year-on-year to $1.42 billion (Dhs5.21 billion), with EBITDA of $564 million (Dhs2.07 billion), maintaining industry-leading margins of 40 per cent. 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 per cent and adjusted EBITDA rising 45 per cent year over year. Adjusted net profit would have been up 306 per cent 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. WAM
Gulf Today
22-05-2025
- Business
- Gulf Today
Adnoc Distribution showcases the innovation of UAE products
Adnoc Distribution, the UAE's largest mobility and convenience retailer, joined the Ministry of Industry and Advanced Technology's (MoIAT) 'Muntajat Watan'na' initiative at this week's 'Make it in the Emirates' exhibition (MIITE), held at the Adnec Centre in Abu Dhabi. Through this programme, Adnoc Distribution is showcasing the quality and innovation of UAE products, with select locally-made items featured prominently in Adnoc Oasis stores across the country until the end of the year. Adnoc Distribution also announced its collaboration with the UAE Federal Youth Authority (FYA) to highlight Emirati-owned SMEs through its Youth Corner initiative, featuring brands such as Emirates Beekeepers, Banna Brothers, LIWA Hot Sauce and NUWA. Products from these home-grown brands will be available for sale as part of a three-month pilot at select UAE locations. Eng. Bader Saeed Al Lamki, CEO of Adnoc Distribution, said, 'By championing local brands and products, and forging strong partnerships with home-grown suppliers, Adnoc Distribution is helping to build resilient supply chains, empower Emirati entrepreneurs and support the UAE's vision for a more self-reliant, sustainable economy.' Adnoc Distribution operated a pop-up Adnoc Oasis convenience store this week at MIITE, which, for the first time, featured 100 per cent UAE-made products for sale. The unique store showcased locally-roasted coffee, food, and speciality beverages, underscoring the company's commitment to supporting the growth of the UAE's food industry. The pop-up store reflects Adnoc Distribution's broader strategy to prioritise UAE-made products across its convenience retail network. Adnoc Distribution also announced a new agreement with Al Ain Farms Group to supply dairy ingredients for Adnoc Oasis coffee, beverages and quick-service food. These initiatives underscore Adnoc Distribution's continued commitment to elevating the UAE's industrial capabilities, empowering local talent, and promoting homegrown businesses. The company remains focused on strengthening the UAE's position as a global hub for innovation and manufacturing excellence, both through Adnoc Oasis and through its other product lines, such as the Adnoc Voyager lubricant line, which is proudly made in the UAE and exported to 47 markets worldwide. Adnoc Distribution also fosters partnerships with both established and emerging UAE brands, including its recently announced strategic partnership with noon, the UAE's leading homegrown digital delivery service. Meanwhile Adnoc Distribution has reiterated its commitment to sustainable industrial development and boosting local content through its participation in the 'Make it in the Emirates' 2025, a leading national platform for driving innovation and empowering Emirati talent. Speaking to the Emirates News Agency, Eng. Bader Al Lamki, CEO of Adnoc Distribution, stated that the company's participation in the forum reflects its strategy to support national products and empower young Emirati entrepreneurs. He noted that Adnoc Distribution is committed to strengthening local supply chains through quality-driven initiatives, including the manufacturing of 'Adnoc Voyager' lubricants in the UAE. He added that additional production lines have been established in Egypt, with exports reaching 47 global markets. Adnoc Voyager is the UAE's leading lubricant brand, and is exported to 47 countries worldwide. Adnoc Distribution recently introduced Voyager Platinum Plus Eco, the UAE's first lubricant product that conforms to API SQ / ILSAC GF-7, the next generation of engine oil standards. Voyager Platinum Plus Eco is one of the first lubricants in the world to adhere to this standard, introduced at the end of March. He stated that by the end of this month, Adnoc Distribution plans to make 'Adnoc Voyager' lubricants officially available through independent distributors in Egypt, further expanding the brand's presence beyond Adnoc Distribution service stations. Adnoc Distribution CEO also noted that partnerships with startups and local brands reflect Adnoc Distribution's keenness to invest in and empower Emirati talent. Adnoc Distribution is taking part in the 'Make it in the Emirates', reinforcing its commitment to the UAE's industrial strategy, youth empowerment, and local economic development. Through a series of strategic initiatives, Adnoc Distribution is showcasing its leadership in supporting UAE-made products, youth entrepreneurship, and sustainable local supply chains. Make it in the Emirates supports the National Strategy for Industry and Advanced Technology by localising supply chains, enabling industrial growth through partnerships and investments, and promoting AI-driven innovation, financing, and startup empowerment. Adnoc also announced that it has signed framework agreements valued at Dhs6 billion ($1.64 billion) with 12 UAE-based companies for manufacturing of critical industrial equipment in the UAE, supporting the 'Make it in the Emirates' initiative.
The National
12-05-2025
- Business
- The National
Barclays initiates coverage of five Adnoc stocks with 'overweight' rating
Britain's Barclays Bank has initiated coverage of five of listed subsidiaries of Adnoc, with an 'overweight' rating on each and expects price appreciation of their stocks in the next 12 months. The five companies – Adnoc Distribution, Adnoc Drilling, Adnoc Gas, Adnoc Logistics & Services as well as Fertiglobe – are assets that are ready to scale, with rapid artificial intelligence and technology adoption, Barclays analysts Lydia Rainforth, Ramachandra Kamath and Mick Pickup wrote in a note to investors last week. 'Together, these companies form a diversified ecosystem poised to deliver robust returns in a dynamic energy landscape,' Barclays said. 'We take the unusual step of initiating on each company with an 'overweight' rating.' An overweight rating on a stock refers to analysts expectations that stock will outperform its industry peers within the next six to 12 months and it is used as an industry yardstick to guide investors on the potential of price appreciation of a particular stock. Barclays said the Adnoc stocks it has included in its coverage universe offer a range of different investment cases with the combination of 'value and momentum as the optimal mix'. The typical return on average capital employed, a financial ratio showing profitability versus the investments a company has made in itself – across Adnoc-covered companies is 20 per cent, which compares to the average of the US and European group at just 11 per cent. Barclays analysts estimate dividend yields average of 4.9 per cent for investors and expects on average 35 per cent potential upside to the stock prices from current levels. 'With Barclays initiating coverage on Adnoc Drilling with an overweight rating, we are proud to now be the most covered stock in Mena, followed by 19 research analysts and supported by 18 'buy' recommendations from across the globe, from China to the US,' said Youssef Salem, chief financial officer of Adnoc Drilling. 'Barclays' broader coverage of five Adnoc-listed companies is also a strong vote of confidence in the Adnoc investment ecosystem and in the UAE as a dynamic, resilient, and increasingly attractive destination for global capital.' Barclays said the wider market negativity across the energy sector spectrum was 'overdone'. The British bank continues to forecast oil and gas demand to grow into the 2030s, notably for oil as non-Opec supply additions slow. 'Concerns about a sustained sharp fall in oil prices will prove unfounded, even in the current tariff backdrop,' Barclays said. The lender's positive rating and target price are a strong endorsement of Adnoc Gas's long-term growth strategy and recent financial performance, said Fatema Al Nuaimi, chief executive of Adnoc Gas. 'Adnoc Gas is targeting 40 per cent Ebitda growth between 2023 and 2029, which, we believe, is a key factor in Barclays recommendation of a buy rating for our stock,' she said.
Gulf Today
11-05-2025
- Business
- Gulf Today
MoIAT launches ‘Make it in the Emirates' national campaign
Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, witnessed the nationwide launch of a national campaign under the 'Make it in the Emirates' platform to promote UAE-made products. The initiative, led by the Ministry of Industry and Advanced Technology (MoIAT), brings together nine of the UAE's leading retail and e-commerce platforms to amplify the presence of locally manufactured products, both in-store and online annually. Running throughout May, the campaign will feature prominently in the lead-up to Make it in the Emirates 2025. Participating partners – Adnoc Distribution, Noon, Tradeling, Grandiose, Talabat, Carrefour, Lulu, Union Coop, and Spinneys – will offer prominent shelf space and dedicated digital storefronts for local products backed by a comprehensive suite of incentives for manufacturers. These incentives include registration fee exemptions, free digital advertising, tailored onboarding support and customer service, logistics and storage support for up to three months, product registration assistance, and the production of promotional videos for social media. The initiative features an annual promotional campaign in collaboration with leading retailers and e-commerce platforms. Participating partners will offer a range of incentives, including prominent product placement on digital platforms, dedicated shelf space in stores, training programmes, fee waivers throughout the campaign period, and complimentary digital advertising. New manufacturers will benefit from additional support, such as the creation of free online storefronts, exemption from storage and logistics fees for up to three months, assistance with product registration through relevant authorities, and social media promotion support. A Memorandum of Understanding (MoU) was signed between the ministry and campaign partners, represented by Omar Al Suwaidi, Under-Secretary of MoIAT; Engineer Bader Al Lamki, CEO of Adnoc Distribution; Mansoor Al Ghurair, CEO of Noon; Mohamed Al Hashemi, CEO of Union Coop; Günther Helm, CEO of Majid Al Futtaim – Retail, Dr. Mussaab Aboud, CEO of Grandiose; Saifee Rupawala, CEO of Lulu Retail; Pedram Assadi, COO of Talabat; Sunil Kumar, CEO of Spinneys; and Alastair Croker, CEO of Tradeling. Al Suwaidi said, 'This campaign aligns with the ministry's efforts to enhance collaboration with manufacturers and suppliers across the UAE. This public-private sector collaboration is a pillar of the country's attractive business environment. It also supports the competitiveness of local companies, which benefit from a favorable investment climate, as well as enablers and incentives under the umbrella of Make it in the Emirates.' Al Suwaidi added, 'This new initiative reflects the ministry's commitment to raising consumer awareness about the quality of UAE-made products. The campaign falls within MoIAT's initiatives aligned with the UAE's Year of Community 2025 by encouraging people to buy local.' Al Lamki said, 'Adnoc Distribution is proud to join the Make it in the Emirates national campaign alliance led by MoIAT, which marks a strategic public-private partnership to support and promote locally made products. Through this collaboration, we are providing a range of incentives for local manufacturers, including dedicated display spaces for UAE-made products at Adnoc Distribution Oasis.' Al Hashemi said, 'Our partnership with MoIAT underscores a shared vision to enhance the competitiveness of UAE-made products and build a thriving industrial and commercial ecosystem. Every dirham spent on local goods is an investment in our economic resilience and national self-sufficiency.' Günther Helm, Chief Executive Officer at Majid Al Futtaim – Retail, commented, 'We're proud to partner with the Ministry of Industry and Advanced Technology to support the UAE's vision for a more diversified and resilient economy. This MoU will help boost the presence of locally made products on our shelves, empower domestic manufacturers, and strengthen the local supply chain, all in line with the Make it in the Emirates initiative.' He added, 'As a regional retail leader, Majid Al Futtaim remains committed to championing local businesses, advancing sustainable development, and contributing to a thriving manufacturing sector, building a more self-reliant and prosperous future for the UAE.' Faraz Khalid, CEO, Noon, said, 'We're proud to partner with the Ministry of Industry and Advanced Technology to support the Make it in the Emirates initiative. Building locally, at scale, is exactly the kind of ambition we believe in. The UAE is an incredible launchpad for businesses — a nation that champions bold ideas and believes deeply in the power of its local economy.' WAM
