ADNOC Transfers Equity Stakes In Listed Companies To XRG For Long-Term Value Creation

Abu Dhabi National Oil Company (ADNOC) P.J.S.C has announced a strategic move to transfer its equity stakes in its publicly listed companies to XRG P.J.S.C. (XRG), which is ADNOC's wholly-owned international energy investment arm. This decision ensures ADNOC maintains control and ownership of these entities through its full shareholding in XRG, aligning with its commitment to long-term value creation and capital discipline.

The internal administrative transfers will not affect the daily operations, leadership, or strategic direction of the listed companies. Dividend policies will remain consistent with ADNOC’s history of providing predictable and sustainable returns. This approach underscores ADNOC's dedication to maintaining stability and growth within its portfolio.

These transfers are set to bolster XRG’s financial standing and support its long-term development goals. By accessing stable dividend streams from the listed companies, XRG can enhance its growth agenda while adhering to disciplined capital return strategies. This move is expected to provide a solid foundation for future expansion and financial stability.

The companies involved in this transfer include Abu Dhabi National Oil Company for Distribution P.J.S.C. (ADNOC Distribution), ADNOC Drilling Company P.J.S.C. (ADNOC Drilling), ADNOC Gas plc (ADNOC Gas), and ADNOC Logistics and Services plc (ADNOC Logistics & Services). These entities represent key components of ADNOC's diversified energy portfolio.

As previously disclosed, regulatory approvals are awaited for the proposed combination of Borouge plc and Borealis AG into Borouge Group International (BGI). Upon completion, BGI will acquire NOVA Chemicals Inc., with ADNOC's stake in BGI being transferred to XRG. Additionally, ADNOC confirms that its entire stake in Fertiglobe plc is already held through XRG.

The majority shareholdings in ADNOC Distribution, ADNOC Gas, and ADNOC Logistics & Services were transferred earlier today via an off-market transaction on the ADX. The transfer of shares in ADNOC Drilling is pending regulatory approval, ensuring compliance with all necessary legal frameworks before finalisation.

This strategic realignment reflects ADNOC's proactive approach to optimising its investment structure while ensuring continued operational excellence across its subsidiaries. By consolidating stakes under XRG, ADNOC aims to streamline management processes and enhance overall efficiency within its investment portfolio.

With inputs from WAM