ADNOC companies report $50bn revenue and $9bn net profit

Together, the six companies intend to distribute AED24.6bn ($6.7bn) in annual dividends to their shareholders, subject to shareholder approvals.

This impressive financial performance provides a solid foundation for continued growth, as each company advances its strategy and engages in diverse initiatives designed to foster profitable growth and offer attractive returns to shareholders.

ADNOC Distribution

ADNOC Distribution reported EBITDA of AED3.85bn ($1.05bn) in 2024, up 4.8  per cent year-on-year.

This record-breaking performance reflects robust fuel volumes, significant non-fuel retail growth, and increasing contributions from international operations including Saudi Arabia and Egypt. Net profit, excluding the impact of the UAE corporate income tax which went into effect in 2024, grew by 2.4  per cent year-on-year to AED 2.66bn ($725 million).

The Board of Directors has recommended a cash dividend of AED1.28bn ($350m) for the second half of 2024, expected to be paid in April 2025 subject to shareholders’ approval.

This dividend is in line with the company’s 2024-2028 dividend policy, which aims for an annual distribution of AED2.6bn ($700m) or at least 75 per cent of net profit, whichever is greater.

ADNOC Distribution is on track to achieve its 2028 targets, including 1,000 service stations and over 500 EV charging points. In 2025, it plans to open 40-50 new stations, primarily in Saudi Arabia, and add around 100 fast and super-fast EV charging points to its existing network of 220 across the UAE. The company also aims to double its Tier-1 food and beverage outlets by 2025.

ADNOC Drilling

ADNOC Drilling delivered record full year 2024 results. Revenue reached over AED14.7bn ($4bn), up 32 per cent year-on-year, resulting in an all-time high of over AED7.3bn ($2bn) EBITDA, up 36 per cent year-on-year, with a margin of 50 per cent.

Net profit for the year reached AED4.8bn($1.3bn), up 26 per cent year-on-year.

This record growth was driven by the expansion of onshore and offshore fleets and the continued development of the oilfield services segment.

The total expected dividend for 2024 is expected to be AED2.9bn ($788m), up 10 per cent year-on-year, following the Board of Directors recommending a final cash dividend of AED1.4bn ($394m) to be paid in April subject to shareholders’ approval.

ADNOC Gas

ADNOC Gas has announced a record net income of AED18.35bn ($5bn) for 2024, along with a 14 per cent year-on-year increase in EBITDA to AED31.75bn ($8.65bn), driven by robust demand for domestic gas which supported volume growth and improved pricing.

Adjusted revenues in 2024 increased by 7 per cent year-on-year to AED 89.66bn ($24.43bn) behind a 2 per cent increase in sales volume and improved pricing. The company also seeks to realise EBITDA growth of over 40 per cent by 2029 compared to 2023 results.

The Board confirmed its dividend of AED12.5bn ($3.412bn), of which an interim cash dividend of AED6.26bn ($1.706bn) was paid in September 2024 and an additional AED6.26bn ($1.706bn) is expected to be paid in April 2025, pending shareholders’ approval. ADNOC Gas will also invest in growth projects to meet the growing demand for lower carbon domestic gas, LPG and LNG.

ADNOC L&S

ADNOC L&S announced robust financial results for 2024, with revenue increasing 29 per cent to AED13bn ($3.55bn), EBITDA up 31 per cent to AED4.2bn ($1.15bn), net profit growing 22 per cent to AED2.8bn ($756m). The strong results were driven by solid performance across all business segments.

During 2024, the company invested in 23 newbuilt energy-efficient vessels to support lower-carbon energy sources and grew its global footprint and large integrated logistics business.

In January, the company closed its previously announced acquisition of an 80 per cent stake in Navig8, which is expected to boost earnings per share by at least 20 per cent in 2025, unlocking AED73.4m ($20m) in annual synergies from 2026.

The transaction adds a modern fleet of 32 tankers and expands ADNOC L&S’ service portfolio including commercial pooling and bunkering.

ADNOC L&S aims to distribute a full-year dividend of AED1bn ($273m) for 2024, with a recommended AED500m ($136.5m) dividend for the second half of 2024 expected to be paid in April 2025, in addition to the AED500m ($136.5m) dividend the first half of 2024 already distributed.

Borouge

Borouge announced exceptional financial results for 2024, reporting a 24 per cent year-on-year increase in net profit to AED4.55bn ($1.24bn).

This growth is largely driven by record production of 5.2 million tonnes and annual sales volumes of 5.3 million tonnes, fuelled by high demand for its specialised products.

The company achieved an industry-leading EBITDA margin of 41 per cent, with revenue increasing by 4 per cent to AED22bn ($6bn).

In 2024, Borouge continued its commitment to innovation by introducing nine innovative new products targeting essential sectors such as infrastructure and packaging.

The company intends to distribute AED4.8bn ($1.3bn) in full year dividends, with the first dividend of AED2.4bn ($650m) already distributed in 2024 and the final dividend distribution of AED2.4bn ($650m) expected in April 2025, pending shareholders’ approval.

Borouge also reaffirmed its intention to distribute AED4.8bn ($1.3bn) in dividends for the 2025 financial year.

Looking forward, Borouge is focused on delivering strong financial performance while strengthening its market position through strategic growth initiatives and advancements in sustainable product development.

The company is also progressing with the Borouge 4 expansion project, which aims to boost annual production capacity by 28 per cent to 6.4 million tonnes, making Borouge the world’s largest single-site polyolefin complex.

Fertiglobe

Fertiglobe reported adjusted EBITDA of AED2.4bn ($648m) in 2024 and revenue of AED7.3bn ($2bn).

The company successfully met its annual cost reduction goal of AED183.5m ($50m) and aims to achieve an additional AED367m ($100m) in EBITDA through its Manufacturing Improvement Plan by the end of 2025 compared to a 2023 baseline.

Results for the fourth quarter were influenced by planned maintenance and the strategic decision to defer several shipments to early 2025 to capitalise on stronger urea prices and to maximise shareholder value.

Over the past year, Fertiglobe strengthened its position as an early mover in the low-carbon ammonia space by taking a Final Investment Decision and beginning construction at a 1 million ton per annum low-carbon ammonia project in the UAE with expected production in 2027.

The Board has proposed a dividend of AED458.75m ($125m) for the second half of 2024, pending approval from shareholders, which would result in total dividends for the year of AED1bn ($275m) and implying an above industry-average yield of 5 per cent.

The outlook for the nitrogen market remains positive, driven by elevated energy prices and limited supply, along with favourable long-term demand indicators.

Fertiglobe will provide further insights and updates during its Capital Markets Day scheduled for May 2025.