Adnoc Gas, a key player in the energy sector, has announced a significant dividend payout for the year 2023, amounting to $3.25 billion. This decision was confirmed at the company’s first annual general meeting (AGM) since its landmark initial public offering (IPO) in March 2023. The distribution includes an inaugural interim cash dividend of $1.625 billion, already paid in December 2023, with a further $1.625 billion set to be distributed in the second quarter of 2024.
Positioned strategically to benefit from Adnoc’s planned expansion of oil production capacity to five million barrels per day by 2027, Adnoc Gas is poised for substantial growth. The company is also gearing up to acquire the Ruwais LNG project, pending a final investment decision (FID) in 2024. The focus for the year is on processing and delivering increased gas volumes to customers while enhancing the product mix to meet global demand for lower-carbon solutions. Key strategic projects underway include expanding the natural gas pipeline network and developing infrastructure to boost gas supply, particularly for petrochemical growth in Ruwais. These initiatives are expected to make significant contributions to the UAE economy and meet the rising global demand for gas.
In 2024, Adnoc Gas is committed to enhancing operational efficiency and driving growth with a focus on decarbonization, digital transformation, and artificial intelligence (AI)-led technology innovation. Notable achievements in 2023 included deploying AI technologies like machine learning and computer vision, enhancing cost efficiency and employee safety. A groundbreaking pilot using advanced robotics for continuous monitoring and inspection of facilities marked a significant advancement in equipment availability and safety. These technological implementations have created value of up to $1 billion since 2016, with anticipated annual savings of $400 million in the coming five years.
Dr. Sultan Ahmed Al Jaber, chairman of Adnoc Gas, highlighted the company’s robust financial and operational results in 2023, noting a 30% surge in share price since the listing date, which drove the market capitalization to $65 billion. The total shareholder returns, including the annual dividend, reached 35% in 2023, a testament to the company’s ability to perform well in a volatile gas market.
Significant investments made in 2023, amounting to $4.9 billion, are set to expand Adnoc Gas’s processing capacity and customer reach, with projects expected to boost sales volumes by 20%. Furthermore, the signing of LNG export agreements worth up to $12 billion reflects the company’s commitment to capitalizing on the increasing global demand for LNG as a transition fuel. Between 2024 and 2029, Adnoc Gas plans to invest over $13 billion in growth opportunities, both domestic and international, aiming to more than double its LNG production capacity by 2028.
Adnoc Gas reported impressive financial results in 2023, with revenues of $22.7 billion and a net income of $4.7 billion, exceeding market expectations. The company plans to progressively increase dividends to shareholders by 5% annually over the next four years, reflecting the strength and predictability of its future cash flows.
Dr. Ahmed Alebri, CEO of Adnoc Gas, expressed confidence in the company’s financial performance, underlining plans to expand the global footprint and explore new revenue streams. The strategic acquisition of the new Ruwais LNG plant is part of these plans, with ambitions to expand internationally, targeting opportunities in Europe, India, China, and South-East Asia.
