The General Assembly of ADNOC Gas PLC (ADNOC Gas) held its first annual meeting since the initial public offering of its shares in March 2023, headed by His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of the Board of Directors of ADNOC Gas.
The shareholders approved the company’s Board of Directors’ proposal to distribute dividends worth $3.25 billion for the entire year of 2023, noting that $1.625 billion of it was distributed as cash dividends for the first phase in December 2023, and the second installment of the same value will be distributed in the second quarter of 2024.
His Excellency Dr. Sultan Ahmed Al Jaber said on this occasion: “The company achieved strong financial and operational results in 2023, fulfilled its promises regarding the distribution of shareholder profits, and is also working to implement many important projects to accelerate its growth in the future. The company's share price witnessed a 30% increase since its listing in March 2023 until the end of the year, and this contributed to raising its market value to reach $65 billion, and it became among the largest and best 20 oil and gas companies in the world. Total shareholder returns, including annual dividends, reached 35% in 2023. These achievements, which were achieved despite the decline in global gas prices, reflect our ability to achieve strong financial performance and outstanding growth.”
He added: “In 2023, ADNOC Gas implemented significant investments to enhance its growth strategy, and awarded contracts worth $4.9 billion to expand processing facilities and reach more customers, as these projects will provide additional sales volumes expected to reach 20%. Our international sales achieved significant growth in 2023 with the signing of agreements to export liquefied natural gas worth up to $12 billion, ensuring the continuity and stability of our revenues in the coming years by benefiting from the growing global demand for this vital resource.”
He said: “ADNOC Gas plans to invest more than $13 billion, between 2024 and 2029, in local and international growth opportunities, with the expectation that its EBITDA margin will increase by up to 40% by 2029. In addition, The company seeks to benefit from the increased demand in international markets for liquefied natural gas, through the acquisition of the new Ruwais LNG plant that is under construction and is planned to more than double production capacity by 2028.
ADNOC Gas achieved strong financial results in 2023, with revenues of $22.7 billion and net income of $4.7 billion, exceeding market expectations, laying a strong foundation for further growth in 2024 and beyond.
The company intends to gradually increase the dividends it pays to its shareholders by 5% on an annual basis over the next four years, which confirms the strength and clarity of the company's future cash flows.
For his part, Dr. Ahmed Al Abri, CEO of ADNOC Gas, said: “Our strong financial performance in 2023 reinforces our confidence in expanding our global presence and exploring new sources of revenue that have the potential to create additional value for shareholders. We plan to double our LNG production capacity through the strategic acquisition of the new Ruwais LNG plant. We also aim to expand internationally by acquiring assets in the gas value chain, and targeting viable opportunities in Europe, India, China and Southeast Asia.”
ADNOC Gas has well-established foundations that enable it to benefit from raising ADNOC’s oil production capacity to five million barrels per day by 2027, and also benefit from ADNOC’s announcement of its intention to make the final investment decision for the Ruwais LNG project in 2024, which it plans to “ ADNOC Gas to acquire it.
This year, the company will focus on processing and delivering increasing volumes of gas to its customers and enhancing its product mix to meet the growing global demand for low-carbon solutions.
With two of its strategic projects under development, the company will continue to expand the natural gas pipeline network and develop infrastructure to enhance the gas supply necessary for the growth witnessed by the petrochemical sector in Ruwais.
Together, these projects will contribute to driving economic growth in the UAE and enhancing ADNOC Gas's ability to meet the growing global demand for this vital resource.
ADNOC Gas will also maintain its commitment to enhancing operational efficiency and driving accelerated growth, with a focus on reducing emissions, digital transformation, and technological innovation based on artificial intelligence.
The company's achievements in 2023 included the deployment of the latest artificial intelligence technologies such as “machine learning”, “computer vision” and “hybrid modeling”, which aim to enhance the efficiency of the level of cost reduction, and the health and safety of the company's employees.
It is worth noting that in September 2023, ADNOC Gas successfully completed a pioneering “proof of concept” experiment using advanced robots for continuous monitoring and inspection of large facilities, which led to improving equipment readiness and enhancing employee safety.
These solutions have significantly enhanced the operational efficiency of the company's factories and production gains, contributing to a business value of $1 billion since 2016.
The company also aims to make greater use of artificial intelligence and other new technologies to improve the level of cost reduction and raise operational efficiency. Over the next five years, the company expects savings of up to $400 million annually and reaps significant benefits.
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