Abu Dhabi National Oil Company “ADNOC” continues to implement its strategy aimed at diversifying sources of income by issuing minority stakes in a number of its subsidiaries.
The Emirati company announced its intention to offer a minority stake representing 15% of the shares of “ADNOC Logistics and Services”, the leading company in the field of shipping and integrated marine logistics services for the energy sector, on the Abu Dhabi Stock Exchange.
Subscription to the Offer Shares is expected to start on May 16, 2023, subject to obtaining the approvals of the relevant regulatory authorities and other considerations.
The offering also comes within the framework of ADNOC’s ambitious growth and expansion plan and the increasing global demand for reliable supplies of low-emission energy.
Listing details
The Abu Dhabi National Oil Company said in a statement today, Wednesday, May 10 (2023) that it will offer about 1.11 billion shares in ADNOC Logistics and Services.
The company is scheduled to announce the price range in the coming days, as it will start receiving investor requests on May 16, with the final price set on May 25.
It is expected that ADNOC Supply and Services shares will start trading next June 1, according to the data seen by the specialized energy platform.
The flotation comes months after state-owned ADNOC raised $2.5 billion in a listing of the gas company’s shares, the world’s second largest initial public offering of the year so far.
The company has also sold stakes in some of its other businesses over the past two years – including its drilling unit, chemicals company Borouge and fertilizer company VertGlobe.
The share sales came amid a rush of listings in the Persian Gulf, which has remained a relatively crowded market amid a global recession.
About $3.5 billion has been raised so far in 2023 through listings in the Middle East — the bulk of it in Abu Dhabi, according to data compiled by Bloomberg.
This is down sharply from the $11.4 billion achieved by this time last year, as markets such as Saudi Arabia remained quiet and there were no privatizations in Dubai, helping volumes to increase in 2022.
ADNOC Supplies and Services
ADNOC Logistics & Services is the shipping and logistics arm of the Abu Dhabi National Oil Group. The company provides integrated marine and logistical services across all areas and stages of the energy sector value chain.
ADNOC Logistics and Services has a world-class integrated services platform, one of the largest and most diversified freight fleets in the region, and the company is among the largest owners and operators of self-elevating and moving platforms.
It operates an integrated supply base that is among the largest of its kind in the UAE.
The company also provides integrated services in the field of shipping, marine logistics and marine services to customers around the world.
Khaled Al Zaabi, Chief Financial Officer of ADNOC, said: “We are pleased to announce our intention to offer a minority stake in the supply and services company, a world-class logistics and maritime services provider, which is the sixth company the group will offer a minority stake in the Abu Dhabi Stock Exchange.
He added: “The planned offering represents another important achievement for ADNOC, as it will contribute to consolidating the company’s position and its pivotal role in stimulating the growth and development of the Abu Dhabi Securities Market.
reduce emissions
As a pioneer in the field of sustainability in the maritime and logistics services sector, Logistics and Services Company plays a major role in driving emissions reduction efforts in the shipping sector and marine and maritime services in the UAE.
ADNOC Services and Logistics, thanks to its possession of the largest and most diversified fleet in the region, as well as its world-class asset base, also contributes to strengthening the position of the UAE and its maritime heritage in the shipping and logistics sector at the global level.
In addition to its well-established relationship with the ADNOC Group, the company provides services to more than 100 global clients in more than 50 countries through a fleet of more than 500 modern marine vessels equipped with advanced technologies, including 245 ships owned by the company.
ADNOC Logistics and Services is a leading company in the field of sustainability in the marine and logistics services system in the UAE, as it aims to reduce carbon emissions from each shipping operation by at least 40% by 2030 compared to 2008.
For his part, CEO of ADNOC Supply and Services, Captain Abdul Karim Al-Masabi, said: “The company is a major component of the energy system in the Emirates, as it provides vital infrastructure and logistical services for the production and transportation of energy products to customers around the world.
The company provides cost-competitive and sustainable solutions to the logistics and marine energy sector through its 3 main business sectors represented in shipping, integrated logistics and marine services.
He added: “The IPO, which the company intends to implement, provides an important opportunity to accelerate the company’s growth, which supports ADNOC’s ambitious strategy for growth and development, and contributes to enhancing the company’s capabilities to expand the range of services it provides to its customers and explore new geographical areas and business sectors.”
ADNOC Logistics business results
According to the unaudited financial results, which reflect the acquisition of “Zakher Marine International” in 2022, the company’s revenues are estimated at 8.4 billion dirhams (2.3 billion dollars), while adjusted earnings before interest, taxes, depreciation and amortization are estimated at 2.2 billion dirhams (599.3 million). dollars) for the year ending December 31, 2022.
The company’s revenues also increased at a compound annual growth rate of more than 20% during the period from 2017 to 2022, according to data seen by the specialized energy platform.
ADNOC Supply and Services’ strategy for continuous growth is based on its program to increase capital expenditures, which ranges between 14.7 and 18.4 billion dirhams ($4-5 billion) in the medium term, which aims to expand the range of services provided to ADNOC group companies, and continue efforts to reduce of emissions to support the UAE’s endeavors to achieve a rational, practical and just transition in the energy sector.
ADNOC Logistics and Services is also committed to strengthening its relationships with existing and new customers, and expanding the range of freight services and services it provides through the company’s integrated logistics platform, while focusing at the same time on strengthening its geographical presence and expanding its scope of operations, as well as exploring opportunities offered by business sectors. new.
The Supply and Services Company aims to pay attractive dividends of 954.9 million dirhams ($260 million) for the year ending December 31, 2023, of which 238.7 million dirhams ($65 million) will be paid in October 2023, with the payment of Another 477.4 million dirhams ($130 million) in April 2024, and it expects to increase dividends by 5% annually in the medium term.
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