Adnoc L&S to distribute H1 2024 cash dividend of $136.5 million

Adnoc Logistics and Services (Adnoc L&S) on Tuesday announced that its Board of Directors (BoD) approved the distribution of a cash dividend of $136.5 million (Dhs501.3 million) for the first half (H1) of 2024, equivalent to 6.78 fils per share.

The Company intends to distribute a total dividend amount of $273 million (Dhs1,002.6 million) for the full year, a 5 per cent increase on the 2023 annualised dividend, in line with its approved dividend policy.

The first half (H1) 2024 dividend will be paid to shareholders who own Adnoc L&S shares on the record date of October 17th, 2024.

Captain Abdulkareem Al Masabi, CEO of Adnoc L&S, said, “We are pleased to announce the H1, 2024 cash dividend, reflecting our strong cash position and balance sheet. We remain committed to shareholder returns through value-accretive growth and the distribution of dividends. Adnoc L&S continues to make significant progress in its transformational growth strategy through strategic investments, while remaining focused on delivering value to our shareholders and stakeholders.”

The dividend is in line with the previously announced Board-approved dividend policy, which sets a progressive annual dividend increase per share of at least 5 per cent per annum over the medium term, using the 2023 annualised dividend ($260 million / Dhs955 million) as the baseline.

The Company intends to pay dividends on a semi-annual basis, with an initial payment for its first-half results paid out in the fourth quarter of that year, and a second payment following its second-half results paid out in the second quarter of the following calendar year.

Adnoc L&S continues to see significant growth across all three of its business segments: Integrated Logistics, Shipping and Marine Services.

Since the start of 2024, Adnoc L&S has announced the commissioning of eight to 10 LNG Carriers (LNGC), two to four Very Large Ammonia Carriers (VLACs), and nine Very Large Ethane Carriers (VLECs), and has announced the ongoing acquisition of Navig8(1). With these milestones, Adnoc L&S has increased its global footprint, capabilities, services and market-leading energy-efficient fleet.

Meanwhile earlier this month Adnoc has announced that Adnoc International Limited (Adnoc International), has entered into an investment agreement with Covestro AG (Covestro), one of the world’s leading chemical players, and launched a voluntary public takeover offer to all shareholders for a cash consideration of Dhs254 per share. Covestro is an industrial pioneer and a global leader in the high-tech specialty chemicals space, boasting a suite of cutting-edge technologies and a range of products that support decarbonisation and the circular economy. Servicing more than 8,500 international business customers globally, the company has 48 production sites world-wide and 13 research and development (R&D) facilities.

Offering more than 10,700 world class specialty solutions, Covestro designs and manufactures advanced specialist products used in semiconductors - such as wafer containers and chip carriers, plastics, performance materials, coatings and adhesives, as well as critical materials used in data centers - air ducts, thermal management solutions for servers and structural components, supporting the growth of artificial intelligence (AI) by producing thermal conductive solutions and providing advanced molding technologies.

This landmark agreement marks a step-change in Adnoc’s international growth strategy as the company delivers on its ambitious international expansion with a focus on gas, LNG, chemicals and low carbon energies, aligned with its Board-mandated strategy.

Subject to successful completion of the transaction, this acquisition will support Adnoc’s goal to become a top five global chemicals player.

Covestro’s specialty chemicals business complements Adnoc’s ambitious chemicals growth strategy and aligns with the UAE’s commitment to global leadership in advanced technologies. Covestro would become the foundational platform for Adnoc’s performance materials and specialty chemicals business and will further drive diversification of Adnoc’s chemical portfolio.

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Adnoc Managing Director and Group CEO, said, “As a global leader and industrial pioneer in chemicals, Covestro brings unmatched expertise in high-tech specialty chemicals and materials, using advanced technologies including AI.

This strategic partnership is a natural fit and aligns seamlessly with Adnoc’s ongoing smart growth and future proofing strategy and our vision to become a top five global chemicals company. It represents a pivotal step for both organisations and embodies our disciplined approach to investing in strategic assets that drive long-term value and unlock new growth opportunities, while reinforcing our commitment to diversifying Adnoc’s portfolio. Our aligned strategies uniquely position us to meet the growing global demand for energy and chemical products, while accelerating the transition to a circular economy.”