ADNOC's listed companies reported a combined revenue of AED 89 billion in the first half of 2024.

ADNOC Group’s listed portfolio companies have reported strong financial results for the second quarter and first half of 2024. The six companies reported a combined revenue of AED 89 billion, AED 28.4 billion of earnings before interest, taxes, depreciation and amortization (EBITDA), and a net profit of more than AED 16 billion for the first half of 2024. The solid performance strengthens the foundation for sustained growth for the companies as they continue to execute their individual strategies and pursue multi-faceted initiatives to deliver profitable growth and attractive shareholder returns.

ADNOC Distribution recorded double-digit EBITDA and net profit growth in the second quarter of 2024. The company reported a 15% increase year-on-year (YoY) to AED979 million in Q2 2024 EBITDA and a 12.9% YoY rise in net profit to AED623 million, while revenue increased 8% YoY to AED 8.8 billion.

In H1 2024, ADNOC Distribution demonstrated growth in EBITDA of 16.2% YoY to AED 1.9 billion, while net profit attributable to equity holders increased by 7.7% YoY to AED 1.2 billion and revenue for the six-month period grew by 8.7% to AED 17.5 billion. The H1 2024 dividend of AED 1.3 billion is expected to be distributed to shareholders in October 2024, subject to the discretion of the Board of Directors.

Projecting a solid outlook for the full year 2024 and beyond, ADNOC Distribution is pushing ahead with its new five-year growth strategy with a focus on leveraging AI, technology, and innovation to unlock value. The company is actively pursuing over 20 innovative AI projects and has established partnerships with leading global AI technology firms to maintain its market-leading position.

ADNOC Drilling delivered record financial results for the second quarter and first half of 2024, driven by fleet expansion and strong operational performance across all business segments, including Oilfield Services. Its Q2 and H1 revenue increased to AED 3.4 billion and more than AED 6.6 billion, up 29% and 26% YoY respectively. The strong top-line translated into record EBITDA both in the quarter and the first half, surging 37% YoY to AED 1.7 billion and 34% YoY to AED 3.3 billion respectively. Net profit for the quarter also grew, by 29% YoY, to AED 1.1 billion, while for the first half, the figure stood at AED 2.1 billion, up 28% YoY. The company’s Board of Directors has approved an interim dividend of AED 1.4 billion, a 10% YoY increase under its new enhanced and progressive dividend policy, equivalent to 9.0468 fils per share.

On the back of exceptional market-beating first-half results, ADNOC Drilling increased its fiscal year 2024 and medium-term guidance. The company will continue to deliver on its strategic initiatives and growth targets. It has been awarded a transformational AED 6.2 billion contract to unlock the UAE’s world-class unconventional energy resources. It has also been awarded an AED 2.7 billion contract for three newbuild island rigs, which will take the company’s total fleet to 148 by 2026. Furthermore, ADNOC Drilling’s strategic joint venture, Enersol, has announced a number of investments. The company is well-positioned to benefit from Enersol’s AI, digitization, and advanced technology acquisitions.

ADNOC Gas has reported strong Q2 results, with a record adjusted net income of AED 4.4 billion, a 21% YoY improvement exceeding market expectations. Revenues for the Q2 period were AED 22.3 billion, marking a 13% YoY increase, while EBITDA growth outpaced revenue improvement, reaching AED 7.7 billion, an 18% YoY increase.

In H1 2024, the company’s revenues reached AED 44.4 billion, with reported EBITDA of AED 15.3 billion and net income of AED 8.7 billion. The Board of Directors approved an interim dividend of AED 6.3 billion, equaling a dividend per share of 8.164 fils, to be distributed in September. The company intends to distribute a total dividend of AED 12.5 billion for the full year 2024.

ADNOC Gas continues to progress with its five-year (2023 to 2027) AED48.5 billion strategic and growth project portfolio. The company has transferred ownership of the AED8.8 billion gas pipeline extension project (ESTIDAMA) to ADNOC, optimizing ADNOC Gas’ capital efficiency. The company will continue to manage and operate the project, allowing access to new customers in the Northern Emirates. ADNOC also recently announced the Final Investment Decision (FID) for the Ruwais LNG project as well as the EPC award and the involvement of International Energy partners as minorities. ADNOC Gas is managing the design and construction, with plans to become an equity partner and operator of Ruwais LNG by acquiring ADNOC’s stake.

ADNOC L&S reported impressive financial results for the second quarter and first half of the year. The Company’s Q2 revenue increased by 42% YoY to AED3.3 billion, with EBITDA growing by 40% YoY to AED1.1 billion. Net profit for the second quarter grew 28% YoY to AED764 million.

For H1 2024, ADNOC L&S recorded a net profit of AED1.5 billion, an increase of 31% from H1 2023. The Company reported revenues of AED6.4 billion in the same period, up 42% from H1 2023. EBITDA rose by 42% to AED2.2 billion driven by robust performance across all business segments. The Company’s dividend policy remains unchanged, with a projected total dividend payable for 2024 of AED1 billion (5% increase from 2023 annualized dividend), payable 50% for 1H 2024 in Q4 2024, subject to approvals.

Following its strong performance, ADNOC L&S revised its full-year 2024 guidance upwards. The Company continues to accelerate the delivery of its transformational growth strategy with value-accretive strategic investment targets of over AED18.3 billion to be realized by 2028. During the second quarter, it agreed to acquire Navig8, an international shipping pool operator and commercial management company. ADNOC L&S also awarded up to AED9.2 billion in shipbuilding contracts for the construction of new LNG carriers, while its strategic joint venture AW Shipping signed contracts worth AED7 billion for the construction of new vessels.

Borouge continued its accelerated growth journey by surpassing analyst estimates, registering a 33% YoY increase in second-quarter net profit to AED1.1 billion. EBITDA surged 18% YoY to AED2.3 billion in Q2, underpinned by a 6% increase in revenue, reaching AED5.5 billion.

For the first half of 2024, Borouge reported a net profit of AED2.1 billion, an increase of 35% YoY, with adjusted EBITDA increasing by 21% to AED4.3 billion as revenue stood at AED10.3 billion. The Company intends to maintain an AED4.8 billion dividend for 2024, or 15.88 fils per share, and distribute an interim dividend of 7.94 fils per share upon shareholder approval.

Looking ahead, Borouge projects that strong production levels and sales volumes will sustain positive momentum. It aims to drive accelerated growth through capacity expansion both in the UAE and internationally, optimal productivity, and a focus on high-value customer segments. Plans include a new specialty polyolefins complex in China and its Borouge 4 facility mega project, which will increase production capacity by 28%, reaching over 70% completion. Central to Borouge’s future growth ambitions is its Artificial intelligence, Digitalization, and Technology (AIDT) strategy, expected to deliver significant value over the next few years through a broad portfolio of projects spanning health and safety, sales, sustainability, and innovative product development.

Fertiglobe, the world's largest seaborne exporter of urea and ammonia combined, reported Q2 2024 revenues of AED 1.8 billion, adjusted EBITDA of AED571 million, and adjusted net profit attributable to shareholders of AED 55 million. The company also reported H1 2024 revenues of AED 3.8 billion, with an adjusted EBITDA of AED 1.4 billion, and an adjusted net profit of AED4936 million. Fertiglobe aims to distribute H1 2024 dividends in October 2024, subject to its Board's approval in September.

Fertiglobe continues to focus on valuable growth projects, including making the Final Investment Decision on the TA'ZIZ 1 mtpa low-carbon ammonia plant in the UAE (30 percent owned by Fertiglobe). The company was selected as the winning bidder in a first-of-its-kind H2Global auction for a contract value of up to AED 1.6 billion, securing a supply of renewable ammonia out of Egypt at a delivered price of AED 4,010 per ton until 2033. Fertiglobe also prioritizes its Manufacturing Improvement Plan, which aims to generate at least AED367 million in incremental annual EBITDA by the end of 2025 compared to 2023.