Adnoc announces intention to float 4% minority stake in Adnoc Gas

Adnoc has announced its intention to float a 4% minority stake in Adnoc Gas, its world-class gas processing, operations and marketing company, on the Abu Dhabi Securities Exchange (ADX).

The offering is expected to open on Feb.23, subject to regulatory approvals and other relevant considerations.

Adnoc Gas (the Company), formed in January 2023 through the consolidation of Adnoc’s gas processing and LNG businesses, is a world-class, large-scale integrated business operating across the gas value chain.

A leading global player with access to capacity of around 10 billion standard cubic feet of gas per day (bscfd), the Company serves a wide range of domestic and international customers with an expanding portfolio of products, supplying around 60% of the UAE’s gas needs and exporting natural gas and related products to a diverse customer base in over 20 countries.

Global demand for gas is expected to continue to grow as the world looks to further decarbonise its energy systems, and Adnoc Gas is expanding its capacity to meet increasing global demand, support UAE gas self-sufficiency and industrial expansion, and expand LNG capacity.

Commenting on the launch of the Adnoc Gas IPO process, Khaled Al Zaabi, Group CFO of Adnoc, said, “We are very pleased to announce our intention to float a minority stake in Adnoc Gas, our world-class gas processing, operations and marketing company.

“Natural gas is central to the energy transition and as the UAE’s gas champion, Adnoc Gas is well-positioned to responsibly harness our significant natural gas resources, while driving efficiencies, delivering value, and reliably supplying this key fuel to meet the world’s growing energy needs.

“This is the fifth occasion where we are bringing an Adnoc company to the market in as many years, and we are delighted to once again offer international and local investors a highly compelling investment opportunity, allowing shareholders to partake in Adnoc and Abu Dhabi’s ongoing value creation journey.”

Adnoc Gas has an umatched asset base with a pipeline of capital projects that will ensure strong growth, and attractive returns for shareholders. Twelve-month adjusted revenues to October 2022 totalled $24.9 billion, with Adnoc Gas delivering adjusted EBITDA of $8.7 billion and net income of $4.8 billion over the same period.

The Company expects to pay a dividend of $3.25 billion relating to our financial performance in the year ended 31st December 2023.

Details of the Offering will be included in an Arabic-language prospectus (the UAE Prospectus) and public subscription announcement (the Public Announcement) and an English-language International Offering Memorandum. The UAE Prospectus and the Public Announcement will be published today, and the International Offering Memorandum is expected to be published in due course.

Meanwhile, Adnoc Distribution has recently announced that it has completed its acquisition from TotalEnergies Marketing Afrique SAS of a 50% stake in TotalEnergies Marketing Egypt LLC. The closing of this landmark transaction, which was first announced in July 2022, marks the official entry of the UAE’s largest fuel and retail distributor into the Egyptian market.

The acquisition is expected to uplift Adnoc Distribution’s EBITDA from year 1 post closing (c.+6% on a fully-consolidated basis).

TotalEnergies Marketing Egypt is among the leading fuel retail operators in Egypt. With a strong brand and a successful track record, this acquisition is an important milestone in Adnoc Distribution’s international growth journey. The partnership includes a diversified downstream portfolio of 240 fuel retail stations, 100+ convenience stores, 250+ lube changing stations, and car washes, as well as wholesale fuel, aviation fuel, and lubricant operations.

In addition to introducing the digitally-enabled Adnoc service station offering to customers in Egypt, Adnoc Distribution also plans to bring its signature Oasis convenience store to the market.

This announcement comes following a remarkable year for Adnoc Distribution. In 2022, the company opened 68 new service stations across its network in the UAE and KSA, while annoucing strong results of an annual EBITDA of Dhs 3.52 billion, and net profit of Dhs 2.75 billion.

Bader Saeed Al Lamki, CEO of Adnoc Distribution, said: “We are excited with our move into a fast-growing market like Egypt which has a significant potential in fuel retail and mobility solutions. To have TotalEnergies as our partners in Egypt offers great strength and stability, and we look forward to working closely with them to foster potential growth opportunities across the region.

“Closing this transaction marks a significant milestone in ADNOC Distribution’s international growth journey, demonstrating our ability to expand in attractive international markets, and reaffirming commitment to our Smart Growth Strategy. Egypt is the Arab world’s most populous country with great economic potential, and we look forward to bringing our offering to this dynamic market.”

Thierry Pflimlin, President Marketing & Services at TotalEnergies, said, “TotalEnergies is pleased to be joining forces with ADNOC Distribution in Egypt. The rich experience of the leading fuel distributor in the UAE will bring substantial added value to TotalEnergies Marketing Egypt. We look forward to collaborating with ADNOC Distribution in its international growth strategy.”