Adnoc listed firms to distribute over $6.7b in annual dividends

Adnoc Group’s publicly traded portfolio companies collectively endorsed over $6.7 billion (Dhs24.6 billion) in annual dividend payments to shareholders for 2024, reflecting their strong financial health and commitment to shareholders value.

At the Annual General Meetings (AGM) of all six listed companies, shareholders voted overwhelmingly to approve the dividend proposals brought forth by each companies’ Boards of Directors. Each of the six listed companies prioritize strong returns and value creation for shareholders, while advancing their strategies to deliver profitable growth.

Adnoc Distribution: At its AGM on March 26, Adnoc Distribution shareholders approved a final cash dividend of $350 million (Dhs1.3 billion) for the second half of 2024, bringing total annual dividends to $700 million (Dhs2.6 billion), equal to 20.57 fils per share. Since its IPO in 2017, Adnoc Distribution has paid out $4.8 billion (Dhs17.6 billion) in dividends and delivered a 92% total shareholder return as of the end of 2024.

The company is planning capital expenditures of $250-300 million (Dhs917.5 million-1.1 billion) in 2025 while maintaining its dividend policy to distribute to shareholders at least $700 million (Dhs2.6 billion) or 75% of net profit, whichever is higher.

Adnoc Gas: Adnoc Gas shareholders approved the companies’ proposal to distribute $1.7 billion (Dhs6.2 billion) for the second half of the year, raising the 2024 annual dividend to $3.41 billion (Dhs12.5 billion), the largest distribution by any issuer on the Abu Dhabi Securities Exchange (ADX).

The dividend payout and the company’s strong 2024 results, which include record adjusted net income of $5 billion (Dhs18.35 billion), propelled it to deliver 19% total shareholder returns for the year. Adnoc Gas is also positioned for potential inclusion in the MSCI and FTSE indices later this year following the company’s landmark secondary share offering of 3.1 billion shares-the largest of its kind in ADX history and the UAE’s largest secondary offering.

Adnoc Drilling: Shareholders of Adnoc Drilling approved the proposed 2024 annual dividend distribution of $788 million (Dhs2.9 billion) at its AGM, including a $394 million (Dhs1.4 billion) dividend for the second half of the year. This represents a 10% increase compared to the previous year, driven by the company’s solid financial performance.

In 2025, the company aims to enhance operational capacity, targeting revenue between $4.6-$4.8 billion (Dhs16.9-17.6 billion). The company plans to expand its fleet to over 148 rigs by 2026 and integrate AI-enabled technologies to boost efficiency.

Adnoc L&S: Adnoc L&S shareholders approved a final 2024 dividend payment of $136.5 million (Dhs501 million), bringing total dividend payments for the year to $273 million and reflecting a 5% year-on-year increase as aligned with its progressive dividend policy. Between its 2023 IPO and the end of 2024, Adnoc L&S delivered more than 178% in total shareholder returns (including share price appreciation and dividends paid), significantly outperforming the ADX and reinforcing investor trust in its long-term strategy.

Borouge: At its in-person AGM on April 7, Borouge shareholders approved a final 2024 dividend of $650 million (Dhs2.4 billion), bringing the total annual payout to $1.3 billion (Dhs4.77 billion), equivalent to 15.88 fils per share. Additionally, shareholders authorised a share buyback programme of up to 2.5% of outstanding shares, reflecting the company’s strong confidence in its future prospects and the significant upside potential beyond the current share price.

At the AGM, Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, and Managing Director and Group CEO of Adnoc, and Borouge Chairman, spoke about the proposed creation of Borouge Group International that will bring together Borouge and Borealis and acquire Nova Chemicals. The new company has been designed to deliver consistently strong dividends and significant near-term growth, with a production capacity of 13.6 million tonnes - nearly tripling Borouge’s current capacity.

Borouge also announced it will increase its 2025 dividend to at least 16.2 fils per share, and following completion of the Borouge Group International transaction, the new entity intends to distribute an estimated total annual dividend of $2.2 billion (Dhs8.1 billion), equivalent to a minimum of 16.2 fils per share from 2026 to 2030.

Fertiglobe: Fertiglobe shareholders approved the proposed payout of a $125 million (Dhs459 million) dividend for the second half of 2024, bringing total 2024 dividends to $275 million (Dhs1.01 billion), equal to 12.2 fils per share. Since its 2021 IPO, the company has distributed $2.5 billion (Dhs 9.2 billion) to shareholders, delivering one of the highest total shareholder returns on the ADX over that time.

WAM