ADNOC Group's Listed Entities Record AED 89 Billion Revenue In First Half Of 2024

ADNOC Group's listed companies have shown robust financial results for the second quarter and first half of 2024. The six firms reported combined revenues of AED89 billion, EBITDA of AED28.4 billion, and net profits exceeding AED16 billion for H1 2024. This performance solidifies their growth foundation as they pursue various strategies to ensure profitable growth and attractive shareholder returns.

ADNOC Distribution saw significant growth in Q2 2024, with EBITDA rising by 15% YoY to AED979 million and net profit increasing by 12.9% YoY to AED623 million. Revenue also grew by 8% YoY to AED8.8 billion. For H1 2024, the company reported a 16.2% YoY increase in EBITDA to AED1.9 billion, a 7.7% rise in net profit to AED1.2 billion, and an 8.7% increase in revenue to AED17.5 billion.

ADNOC Drilling achieved record financial results driven by fleet expansion and strong operational performance across all segments, including Oilfield Services. Q2 revenue rose by 29% YoY to AED3.4 billion, while H1 revenue increased by 26% YoY to over AED6.6 billion. EBITDA surged by 37% YoY in Q2 to AED1.7 billion and by 34% YoY in H1 to AED3.3 billion.

The company's net profit for Q2 grew by 29% YoY to AED1.1 billion, with H1 net profit up by 28% YoY to AED2.1 billion. ADNOC Drilling's Board approved an interim dividend of AED1.4 billion, reflecting a 10% YoY increase under its new progressive dividend policy.

ADNOC Gas posted strong Q2 results with adjusted net income reaching a record AED4.4 billion, up by 21% YoY, surpassing market expectations. Revenues for the quarter increased by 13% YoY to AED22.3 billion, while EBITDA grew by 18% YoY to AED7.7 billion.

For H1 2024, ADNOC Gas reported revenues of AED44.4 billion, EBITDA of AED15.3 billion, and net income of AED8.7 billion. The Board has approved an interim dividend of AED6.3 billion, scheduled for distribution in September.

Borouge's Accelerated Growth

Borouge outperformed analyst estimates with a Q2 net profit increase of 33% YoY to AED1.1 billion due to higher sales and cost efficiencies, achieving its highest-ever production volumes. EBITDA rose by 18% YoD to AED2.3 billion as revenue reached AED5.5 billion.

In H1 2024, Borouge reported a net profit of AED2.1 billion (up by 35% YoY), adjusted EBITDA of AED4.3 billion (up by 21%), and revenue of AED10.3 billion.

Fertiglobe's Focus on Value-Accretive Projects

Fertiglobe recorded Q2 revenues of AED1.8 billion, adjusted EBITDA of AED571 million, and adjusted net profit attributable to shareholders of AED55 million for Q2 2024.

The company’s H1 revenues were reported at AED3.8 billion with an adjusted EBITDA of AED1.4 billion and an adjusted net profit of nearly half a million dirhams.

ADNOC L&S Financial Highlights

ADNOC L&S delivered impressive financial results for Q2 and H1 of the year with Q2 revenue increasing by 42% YoY to reach over three-billion dirhams while EBITDA grew by the same percentage reaching one-billion dirhams.

The company's net profit for the second quarter grew by nearly one-third compared to last year reaching three-quarters-of-a-billion dirhams while its first-half profits increased similarly reaching one-and-a-half-billion dirhams driven largely through robust performance across all business segments.

The company’s dividend policy remains unchanged projecting total dividends payable for this year at one-billion dirhams subject-to-approvals payable fifty percent for first-half twenty-twenty-four in fourth-quarter twenty-twenty-four subject-to-approvals following strong performance revising full-year guidance upwards accelerating delivery transformational growth strategy value-accretive strategic investment targets over eighteen-billion-dirhams realised twenty-twenty-eight during second-quarter agreed acquire Navig8 international shipping pool operator commercial management company awarded shipbuilding contracts construction new LNG carriers strategic joint venture AW Shipping signed contracts worth seven-billion-dirhams construction new vessels

With inputs from WAM