ADNOC Fuel, a world-class built-in fuel processing firm, at present introduced sturdy monetary outcomes for the second quarter (Q2) of 2024.
Pushed by strong home demand, fuelled by the UAE’s inhabitants progress and industrial growth, revenues for the Q2 interval of $6,076 million is a rise of 13% y-o-y (12 months on 12 months). ADNOC Fuel, a subsidiary of the Abu Dhabi Nationwide Oil Firm (ADNOC) that provides over 60% of the home fuel market, noticed its 2023 revenues attain $8.16 billion.
ADNOC Fuel reported a 9% enhance in revenues to exceed $9 billion for the primary half of 2024. The web earnings for H1-2024 was $2.37 billion, up from $2.25 billion a 12 months in the past and exceeding expectations, in keeping with Gulf Information.
ADNOC Fuel Sees Large Income Progress
EBITDA progress outpaced income enchancment throughout the quarter, reaching $2,086 million, an 18% y-o-y (12 months on 12 months) enhance. The corporate’s EBITDA margin of 34% is underpinned by excessive gross sales demand and the advantages of its long-duration fuel provide and buy settlement and ADNOC Fuel’ integral function in powering and enabling the UAE’s Industrial diversification and progress.
Dr Ahmed Alebri, Chief Government Officer of ADNOC Fuel, stated: “Our strong Q2 outcomes clearly replicate our concentrate on progress, considerably strengthening revenues and profitability whereas persevering with to keep up a wholesome margin. The 21% enchancment in Q2 Internet Revenue underlines our dedication to enhancing our efficiency and implementing and optimising prices. We’re effectively positioned to pursue our bold progress agenda, underpinned by the energy, growth, and ambition of the UAE market.”
ADNOC Fuel Leads the Manner in AI and Digital Transformation for the Fuel Trade
ADNOC Fuel has been a pioneer in Synthetic Intelligence, Digitalisation and Know-how (AIDT) for the fuel trade. The corporate put in one of many trade’s largest Actual Time Optimiser (RTO), which is an answer that helps in analysing operation parameters and recommends find out how to cut back power consumption and emissions. The answer first piloted in 2018 was rolled out throughout 27 manufacturing trains. Total, $1 billion in worth has been realised by way of the deployment of AIDT in ADNOC Fuel since 2016. An additional $2 billion is anticipated over the following 5 years.
ADNOC Fuel Optimises Capital Effectivity with ESTIDAMA Mission Switch
ADNOC Fuel introduced in July that it’ll switch possession of the $2.4 billion fuel pipeline extension mission (ESTIDAMA) to ADNOC, considerably optimising ADNOC Fuel’ capital effectivity. The corporate will proceed to handle and function the ESTIDAMA mission, permitting it to succeed in new clients within the Northern Emirates.
Strategic LNG Partnerships
In June, ADNOC introduced a Last Funding Resolution (FID) on the Ruwais Liquified Pure Fuel (LNG) mission and in July, it welcomed Mitsui & Co, Shell, bp, and TotalEnergies as fairness companions, every taking a ten% stake. ADNOC additionally awarded an Engineering, Procurement, and Building (EPC) contract valued at over $5.5 billion. ADNOC Fuel is managing the design and building and has reaffirmed its intention to turn into an fairness accomplice, and operator of Ruwais LNG by buying ADNOC’s stake.
Interim Dividend Of $1.706 Billion Authorized
ADNOC Fuel has introduced a rise in its annual dividend per share by 5%, aligning with its dividend coverage to distribute a complete of $3,412 million for the total 12 months (FY) 2024. The corporate has declared an interim dividend of $1.706 billion, equal to eight.164 fils per share, payable in September. The corporate has additionally proposed a closing dividend of the identical quantity of $1.706 billion to be distributed in April 2025.
About ADNOC Fuel
ADNOC Fuel is a world-class, large-scale built-in fuel processing firm working throughout the fuel worth chain, from receipt of feedstock from ADNOC by way of massive, long-life operations for fuel processing and fractionation to the sale of merchandise to home and worldwide clients. ADNOC Fuel provides roughly 60% of the UAE’s gross sales fuel wants and provides end-customers in over 20 international locations.
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