ADNOC Gas approves $3.25b dividend for 2023, to invest $13b by 2029 for global growth

image is ADNOC GAS

Between 2024 and 2029, ADNOC Gas plans to invest more than $13 billion in domestic and international growth opportunities. The company is also looking to increase its LNG export volumes in a growing global market and more than double its LNG production capacity by 2028 with the acquisition of the new Ruwais LNG plant. Picture used for illustrative purpose.

ADNOC Gas shareholders have approved its Board of Directors’ proposal to distribute a robust full-year 2023 dividend of $3.25 billion at its first Annual General Meeting (AGM) held since the company’s landmark initial public offering (IPO) last year.

The AGM was chaired by His Excellency Dr Sultan Ahmed Al Jaber, Chairman of ADNOC Gas. An inaugural interim cash dividend of $1.625 billion was paid in December 2023, with a further $1.625 billion scheduled for distribution in the second quarter of 2024.

Robust financial results 

“ADNOC Gas recorded robust financial and operational results in 2023, has delivered on its dividend promise to shareholders, and is progressing several significant projects that will accelerate its future growth,” His Excellency Dr. Sultan Ahmed Al Jaber said in a statement.

“The company saw its share price surge 30% from its listing date in March 2023 to year-end, driving its market capitalisation to $65 billion and ranking us among the Top 20 Oil & Gas companies worldwide. Total shareholder returns, including the annual dividend, reached 35% in 2023. These exceptional achievements in a volatile gas market underscore our ability to deliver robust financial performance and growth throughout the commodity cycle,” Dr Al Jaber said.

“In 2023, we made substantial investments to advance our growth strategy, awarding contracts worth $4.9 billion to expand our processing capacity and reach more customers. These projects will provide additional sales volumes of up to 20%. Our international sales momentum grew in 2023 with the signing of liquefied natural gas (LNG) export agreements worth up to $12 billion, securing our returns in the coming years and capitalizing on the increasing global demand for LNG as a transition fuel,” he added.

Doubling LNG production

According to Dr Al Jaber, between 2024 and 2029, ADNOC Gas plans to invest more than $13 billion in domestic and international growth opportunities, with predictable margin business expected to increase the company’s EBITDA by up to 40% by 2029. “In addition, we are looking to increase our LNG export volumes in a growing global market. Our aim is to acquire the new Ruwais LNG plant and more than double our LNG production capacity by 2028,” he added.

ADNOC Gas delivered strong financial results in 2023, reporting revenues of $22.7 billion and a net income of $4.7 billion, exceeding market expectations and setting the foundation for further growth in 2024 and beyond. The company intends to progressively increase the dividend it pays its shareholders by 5% year-on-year over the next four years, underscoring the strength and visibility of ADNOC Gas’ future cash flows.

Dr. Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented: “Our strong financial performance in 2023 underpins our confidence to expand our global footprint and explore new revenue streams that hold the potential to unlock additional value for shareholders. We are planning to more than double our LNG production capacity by strategically acquiring 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.”

FID on Ruwais LNG plant

ADNOC Gas is well-positioned to benefit from ADNOC’s planned expansion of oil production capacity to five million barrels per day by 2027, the company said. In addition, ADNOC has announced its intention to take a final investment decision (FID) on the Ruwais LNG project in 2024, which ADNOC Gas plans to acquire. In 2024, the company will focus on processing and delivering increased volumes of gas to its customers and enhancing its product mix to meet the growing global demand for lower-carbon solutions.

Through two of its ongoing strategic projects, ADNOC Gas will continue to expand its natural gas pipeline network and develop infrastructure to boost gas supply for its petrochemicals growth in Ruwais. All these projects will make a significant contribution to the UAE economy and expand ADNOC Gas’ capacity to meet increasing global gas demand.

In 2024, ADNOC Gas remains committed to enhancing operational efficiency and driving accelerated growth with a focus on decarbonisation, digital transformation, and artificial intelligence (AI)-led technology innovation. The company’s achievements in 2023 included the deployment of cutting-edge AI technologies such as machine learning, computer vision, and hybrid modelling, aimed at enhancing cost efficiency and employee safety.

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