ADNOC Listed Companies Achieve Over US$2.3 Billion Net Profit In First Quarter Of 2025

ADNOC Group's listed companies collectively achieved over $2.3 billion in net profit for the first quarter, showcasing their robust business models and adaptability in changing markets. Each of the six entities reported strong financial outcomes, advancing strategic goals for profitable growth.

ADNOC Distribution recorded a net profit of $174 million, marking a 16% increase from the previous year. This was driven by record fuel sales and strong non-fuel retail performance, resulting in its highest-ever first-quarter EBITDA. The company expanded its network by adding 20 new service stations, reaching a total of 915, and is on track to meet its target of 40-50 new stations by 2025. ADNOC Distribution remains committed to its dividend policy, aiming for an annual payout of $700 million or at least 75% of net profit through 2028.

ADNOC Drilling reported a revenue increase of 32% to $1.17 billion year-on-year, with EBITDA rising by 22% to $533 million. Net profit grew by 24% to $341 million compared to the previous year. The company secured new contracts worth over $2.4 billion, enhancing its earnings visibility and expanding its revenue pipeline. ADNOC Drilling's Board approved quarterly dividend distributions, resulting in a payment of $217 million for Q1 2025.

ADNOC Gas Achievements

ADNOC Gas achieved a net income of $1.27 billion for Q1 2025, reflecting a 7% year-on-year increase. EBITDA rose by 4% to $2.16 billion due to increased domestic gas demand and efficient management during planned shutdowns. The company signed significant LNG supply agreements worth $9 billion with Indian Oil Corporation and JERA Global Markets and increased capital expenditures by 43%. On May 13th, ADNOC Gas was selected for inclusion in the MSCI Emerging Markets Index, effective June 2nd.

ADNOC Logistics & Services' Resilience

ADNOC Logistics & Services plc (ADNOC L&S) reported a revenue increase of 41% to $1.2 billion in Q1 2025, with EBITDA rising by 20% to $344 million. The company's diversified business model showed resilience as growth from Integrated Logistics offset lower seasonal shipping rates. ADNOC L&S maintained its guidance for both net income and EBITDA for 2025 and expects a 5% annual dividend growth aligned with its progressive policy.

Borouge's Strong Results

Borouge posted a net profit of $281 million for Q1 2025, driven by increases in sales volumes (10%) and production volumes (7%). Revenue grew by 9% year-on-year to $1.42 billion, with an EBITDA margin of 40%. Borouge has repurchased over 89 million shares since April under its buyback programme, reflecting confidence in future prospects. The company plans to raise its annual dividend to 16.2 fils per share until at least 2030.

Fertiglobe's Strategic Initiatives

Fertiglobe announced a revenue increase of 26%, with adjusted EBITDA up by 45% year-over-year for Q1 2025. Excluding last year's one-off foreign exchange gain, adjusted net profit would have risen by 306%, driven by higher urea prices and operational improvements. Fertiglobe launched the 'Grow 2030 Strategy' targeting $1 billion in EBITDA by focusing on operational excellence and low-carbon ammonia growth.

The company's optimisation initiatives are supported by ADNOC’s integration efforts aimed at reducing fixed costs between $15 - $21 million annually and saving $10 million through financing support. These measures are expected to boost after-tax earnings per share growth by up to ~16% by the end of 2025.

The article highlights ADNOC Group's diverse portfolio companies achieving substantial financial success across various sectors while maintaining strategic growth initiatives amidst evolving market conditions.

With inputs from WAM