Dr Sultan bin Ahmad Sultan Al Jaber says company is exploring possibility of IPO of minority stakes
The CEO of the Abu Dhabi National Oil Company (ADNOC) on Tuesday confirmed the company is mulling plans to sell stakes in some of its subsidiaries.
Dr Sultan bin Ahmad Sultan Al Jaber told the 38th annual Oil and Money Conference in London that ADNOC is exploring the IPO of minority stakes in some of its services units.
However, he emphasised in comments published by state news agency WAM that ADNOC will remain wholly owned by the Abu Dhabi Government.
Last month, sources told Bloomberg that ADNOC is considering a plan to sell shares in its shipping unit as part of a broader strategy to attract investment into the emirate.
It said ADNOC is merging three maritime transport and service businesses and will only decide on whether to sell a minority stake in the new unit through an initial public offering once that transaction is done, adding that a sale isn’t likely to go ahead before 2019.
Al Jaber told the conference: "To deliver the next wave of our growth we are actively seeking fast acting partners who can deliver access to high growth economies; forward looking partners, who can apply the latest technology to our upstream, midstream and downstream operations and financially savvy partners, including private equity and institutional investors, who can deploy long-term capital for attractive, sustainable returns."
He added: "As part of the active management of our portfolio of assets we are looking to optimise our balance sheet to both free-up capital for re-investment and enhance returns. ADNOC is therefore considering various options with regards to its future financing strategy."
Al Jaber expressed confidence that hydrocarbons would continue to be the bedrock of economic growth for decades to come. By 2040, he said, oil and gas would still be essential to the global energy mix, supplying over half of the world’s energy needs, while renewables and nuclear would make up 27 percent and coal would fall to 22 percent. Meanwhile, petrochemicals would grow 150 percent by 2040.
Earlier this week, ADNOC launched its new unified brand, bring together the company’s various subsidiaries under a common identity in a move designed to highlight the scale of its business and its contributions to the UAE’s economy.
According to ADNOC, the unified brand will also help create a more integrated and progressive corporate culture, in which each company will maintain operational autonomy under a centralised governance model.