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ADNOC’s listed subsidiaries make Dh8.07b in profits in Q1

ADNOC’s listed subsidiaries make Dh8.07b in profits in Q1
15 May 2024 09:18

SAYED AL HAJJAR (ABU DHABI)

Profits for six ADNOC subsidiaries listed on the Abu Dhabi Securities Exchange (ADX) rose during Q1 of this year to about Dh8.07 billion, compared to Dh7.78 billion during the same period last year, marking a growth of 3.7%.

The listed companies, including ADNOC Distribution, ADNOC Drilling, and ADNOC Gas in the energy sector, as well as Fertiglobe and and Borouge in the basic materials sector, and ADNOC Supply and Services in the energy sector, announced new expansion plans for the current year.

ADNOC GasADNOC Gas PLC achieved strong performance in the first quarter of 2024, with revenues increasing by 15% year-on-year (YoY) to reach Dh22.072 billion ($6.011 billion), thanks to a 14% increase in local demand.

As a result of the revenue increase and a continuous focus on operational efficiency, first-quarter 2024 earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose to Dh7.623 billion ($2.076 billion), an increase of 17% YoY.

The 25-year gas supply and purchase agreement contributed to an increase in the EBITDA margin to 35% from 34% recorded in the previous year.

The company confirmed that it will be able to increase annual dividends by 5% to reach Dh12.521 billion in 2024, in line with its dividend policy.

ADNOC DrillingDuring the first quarter of this year, ADNOC Drilling achieved revenues of Dh3.25 billion, an increase of 24% YoY.

The marine rigs and oil field services sectors saw revenue increases of 51% and 16%, respectively.

EBITDA also increased by 31% YoY to reach Dh1.6 billion, driven by strong operating performance, which led to an increase in the EBITDA margin to 49%.

Net profit for the quarter reached Dh1 billion, an increase of 26% YoY.

The Board of Directors recommended a new progressive dividend policy that suggests increasing the dividend distribution rate by at least 10% annually over the next five years (2024-2028).

Borouge PLCBorouge PLC achieved a 37% year-on-year growth in net profits during the first quarter of 2024, reaching Dh1 billion, thanks to strong price premiums driven by a focus on high-value product sectors and efficient cost management.

During its annual general assembly meeting on March 28, Borouge reaffirmed its intention to pay attractive dividends worth Dh4.8 billion in 2024, supported by the company’s ability to achieve exceptional cash flows and maintain a strong balance sheet.

The dividends represent a current return of 6.5%, equivalent to 15.88 fils per share. ADNOC DistributionDuring the first quarter of 2024, ADNOC Distribution recorded an 18% YoY increase in EBITDA to reach $248 million, confirming the company’s progress towards achieving the goals of its new five-year strategy.

Net profit amounted to $150 million, compared to $146 million in the first quarter of 2023, despite the impact of the recently imposed corporate tax in the UAE.

Net profit witnessed an increase of 13% to reach $165 million after excluding the impact of this tax.

The company’s shareholders approved the new five-year dividend distribution policy during ADNOC Distribution’s annual general assembly meeting last March, which stipulates the distribution of annual profits amounting to $700 million or at least 75% of net profits, whichever is higher.

ADNOC Logistics and Services During the first quarter of 2024, ADNOC Logistics and Services Company achieved net profits of Dh712 million, or Dh0.10 per share, an increase of 34% compared to a net profit of Dh533 million in the first quarter of 2023.

The company announced revenues of Dh3.085 billion in the first quarter of 2024, an increase of 42% compared to the same period in 2023.

EBITDA increased by 44% to reach Dh1.050 billion during the same period, as a result of continued strong performance across all business sectors.

The company aims to invest more than Dh18.4 billion in enhancing value in energy-related maritime logistics services in the medium term to meet the growing demand inside and outside the UAE.

Fertiglobe Fertiglobe’s revenues during the first quarter of this year amounted to $552 million, with adjusted EBITDA of $223 million and adjusted net profit of $119 million.

In April 2024, the company’s shareholders approved a dividend for the second half of 2023 of $200 million, equivalent to 9 fils/share, to be paid in May 2024.

This brings the total dividends for 2023 to $475 million, including the H1 2023 dividend of $275 million, which was paid in the fourth quarter of 2023.

Fertiglobe continues its commitment to delivering greater shareholder value, leveraging its cost and manufacturing optimisation programme and initiatives to enhance cash flow generation and maintain a strong balance sheet.

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