ADNOC Group’s listed units post Dhs89bn in combined H1 2024 revenue

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ADNOC Group’s six listed portfolio companies reported a combined revenue of $24.2bn (Dhs89bn), net profit of more than Dhs16bn and earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Dhs28.4bn for the first half of 2024.

The robust performance reinforces the companies’ foundation for sustained growth as they continue to execute individual strategies and pursue initiatives aimed at delivering profitable growth.

ADNOC Distribution

ADNOC Distribution reported a 16.2 per cent year-on-year (YoY) increase in half-year EBITDA to Dhs1.9bn and its profit rose by 7.7 per cent to reach Dhs1.2bn. The fuel retailer’s revenue for the same period came in at Dhs17.5bn, up 8.7 per cent compared to the same period a year ago.

The company opened 10 new service stations in the six months to June 30, expanding its total network to 847 and remains on track to achieve its full-year target of adding as many as 20 new sites.

ADNOC Drilling

ADNOC Drilling reported a 26 per cent YoY increase in first-half revenue to Dhs6.6bn, boosted by the expansion of its operations across all business segments. The drilling firm’s net profit stood at Dhs2.1bn, up 28 per cent YoY compared to H1 2023, while its EBITDA surged by 34 per cent to Dhs3.3bn, yielding a 50 per cent EBITDA margin.

With a fleet of 140 rigs, 136 owned plus four lease-to-own land rigs, ADNOC Drilling is the largest national drilling company in the Middle East region in terms of rig fleet size and has a market value of Dhs74.8bn as of August 13, 2024.

ADNOC Gas

ADNOC Gas said its half-year income surged by 21 per cent YoY to $1.2bn from $984m for the same period a year earlier. Revenue for the six months ending June 30 increased by 13 per cent to $6.1bn, up from $5.4bn in H1 2023, driven by stronger sales in the domestic gas business due to population growth and industrial expansion in the UAE.

Earlier in August, ADNOC Gas signed a long-term heads of agreement with Japanese utilities provider Osaka Gas for the delivery of up to 0.8 million metric tonnes per annum of liquefied natural gas.

The deal with Osaka Gas follows several LNG sales agreements, including those with Japan Petroleum Exploration Company, TotalEnergies Gas and Power, Indian Oil Corporation (IOCL), PetroChina International and GAIL India.

ADNOC L&S

ADNOC Logistics & Services (ADNOC L&S) posted a net profit of Dhs1.5bn in H1 2024, an increase of 31 per cent compared to the same period a year ago, while its revenue jumped 42 per cent to Dhs6.bn. Its EBITDA for the same period rose by 42 per cent to Dhs2.2bn, driven by robust performance across all business segments.

ADNOC L&S revised its growth guidance upwards in H1 2024. It plans to invest more than Dhs18.3bn in energy-related maritime logistics by 2028 to meet growing demand in the UAE and beyond.

The company awarded $1.9bn worth of shipbuilding contracts to build 13 new very large ethane and ammonia carriers in July and invested $2.5bn to build new LNG tankers. The energy logistics firm delivers crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to its international customers.

Borouge

Abu Dhabi petrochemicals giant Borouge said its half-year net profit surged by 35 per cent YoY to Dhs2.1m, driven by higher production volumes, increased sales and improved cost efficiencies.

The company attributed its profitability to sustained price premia for polyethene and polypropylene, which remained robust at $198 and $138 per tonne, respectively.

The company’s adjusted EBITDA jumped 21 percent to Dhs4.3bn, while its revenue stood at Dhs10.3bn. Its board intends to maintain a Dhs4.8bn dividend for 2024 or 15.88 fils per share.

A consortium of Abu Dhabi state-backed firms, led by Borouge, signed an agreement with China’s Wanhua Chemical and Wanrong New Materials (Fujian) in July to build a polyolefins complex in Fuzhou, Fujian Province.

Fertiglobe

Fertiglobe’s revenues in the January-June period reached Dhs3.8bn, while its EBITDA and profit came in at Dhs1.4bn and Dhs493.6m, respectively. In July, the firm won the bid to supply as much as 397,000 tonnes of renewable ammonia to the European Union by 2033 at a delivered contract price of $1,086 (EUR1,000) per tonne.

Fertiglobe is advancing other low-carbon ammonia projects, including the TA’ZIZ one million tonnes per annum low-carbon ammonia facility in Al Ruwais, in partnership with TA’ZIZ, Japan’s Mitsui and South Korea’s GS Energy.

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