Dubai: ADNOC Gas shareholders are up for a $1.625 billion dividend for the company's H2-2023 performance in the coming weeks, and taking full-year total to $3.25 billion.
Things get even better for them - ADNOC Gas expects to increase dividend by 5 per cent every year over next 4 years, 'underscoring the strength and visibility of its future revenues', the ADNOC entity said in a statement. (The current dividend yield works out to 4.93 per cent.)
"The company saw its share price surge 30 per cent from its listing date in March 2023 to year-end, driving its market capitalization to $65 billion and ranking us among the Top 20 oil and gas companies worldwide," said Dr. Sultan Al Jaber, Chairman.
"Total shareholder returns, including the annual dividend, reached 35 per cent in 2023. These exceptional achievements in a volatile gas market underscore our ability to deliver robust financial performance and growth throughout the commodity cycle.
"Our international sales momentum grew in 2023 with the signing of LNG export agreements worth up to $12 billion, securing our returns in the coming years and capitalizing on the increasing global demand for LNG as a transition fuel.”
ADNOC Gas confirmed plans to put in a sizeable $13 billion plus into domestic and international 'growth opportunities' in the next five years, as it seeks a 'predictable margin business' that would boost EBITDA by up to 40 per cent.
The parent entity ADNOC’s planned expansion of oil production capacity to 5 million barrels per day by 2027 will be a platform for ADNOC Gas to derive operational and financial gains.
Final decision on Ruwais LNG buy
ADNOC has also announced its intention to take a 'final investment decision' on the Ruwais LNG project in 2024, which ADNOC Gas plans to acquire.
In 2024, ADNOC Gas will 'focus on processing and delivering increased volumes of gas to its customers and enhancing its product mix' to meet rowing global demand for lower-carbon solutions.
In 2023, we made substantial investments to advance our growth strategy, awarding contracts worth $4.9 billion to expand our processing capacity and reach more customers. These projects will provide additional sales volumes of up to 20%
"Through two of its ongoing strategic projects, the company will continue to expand its natural gas pipeline network and develop infrastructure to boost gas supply for its petrochemicals growth in Ruwais," the statement said.
More overseas buys
"We are planning to more than double our LNG production capacity by strategically acquiring the new Ruwais LNG plant," said Dr. Ahmed Alebri, CEO of ADNOC Gas. "We aim to expand internationally by acquiring new positions in the gas value chain, targeting opportunities in Europe, India, China and South-East Asia if they add value to our business.”
