Adnoc's Abu Dhabi-listed units to pay $43 billion in dividends by 2030

Energy company's subsidiaries make up nearly 40% of annual dividends paid on the ADX

Adnoc, Abu Dhabi’s state-owned energy company, aims to distribute Dh158 billion ($43 billion) in dividends across its six publicly listed companies by the end of this decade, as its units continue to create reliable long-term value.

The distribution of dividends, subject to approvals, is in addition to the Dh86 billion the company has already paid since the energy giant floated shares of its first company on the Abu Dhabi Securities Exchange in 2017, Adnoc said on Wednesday.

This dividend target reaffirms the company's commitment to delivering long-term value, reducing costs and accelerating growth, said Dr Sultan Al Jaber, Adnoc's managing director and group chief executive.

“Adnoc is providing opportunities for citizens, residents and partners to create and enhance value that contributes to the growth of the national economy,” said Dr Al Jaber, who is also Minister of Industry and Advanced Technology.

“Our target to distribute Dh158 billion in dividends is a landmark step that gives investors and shareholders clear visibility of dividend distributions through 2030.”

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Adnoc made the announcement after its inaugural Investor Majlis in Abu Dhabi, which was attended by 500 key stakeholders. The majlis provided shareholders an opportunity to directly engage with the senior leadership across Adnoc and its listed companies.

Adnoc on Wednesday also said that Adnoc Distribution, Adnoc Gas and Adnoc Logistics and Services will join in Adnoc Drilling in distributing dividends on a quarterly basis.

Its six subsidiaries make up about 40 per cent of the annual dividends paid on the ADX.

Growth drivers

In September, Adnoc said it is transferring its equity stakes in listed companies to its international investment unit XRG, with the move not affecting operations, teams or the strategic direction of the entities.

Adnoc said it continues to "retain control and ultimate ownership of the listed companies through its 100 per cent shareholding of XRG” and reaffirmed its commitment to long-term value creation and capital discipline, it said in a statement at the time.

Adnoc is the largest hydrocarbons producer in the UAE and this year marks 75 years since it first started oil and gas exploration with the drilling of a well at Ras Al Sadr.

That milestone laid the foundation for the UAE capital to diversify its economy. The company has been at the forefront of the emirate's growth for more than seven decades and has harnessed the nation’s oil and gas resources responsibly to create lasting value.

Adnoc's listed entities are at the forefront of growth and are vital for Adnoc to achieve targets of boosting upstream capacity, unlocking conventional resources, more than doubling domestic chemicals and LNG capacity as well as raising its gas processing capacity by 30 per cent, the company said.

Strategic announcements

The listed entities on Wednesday also made strategic announcements to give guidance on their continuing projects and future plans.

Adnoc Distribution, which is the largest fuel and convenience retailer in the UAE with a 64 per cent share of the retail fuel market, announced a proposed extension to its existing dividend policy for an additional two years.

The move is expected to bring total dividend targets since last year to Dh18 billion, following a previously announced Dh12.85 billion target from last year to the end of 2028.

The company, which has nearly 940 stations across the UAE, Saudi Arabia, and Egypt, has delivered 70 per cent earnings growth since its IPO.

Adnoc Drilling, which operates nearly 150 rigs across onshore and offshore operations, announced a dividend distribution floor of Dh25 billion by 2030, representing a 26 per cent minimum cumulative dividend return.

The company said it is also rapidly advancing its unconventional energy programme, with strong early results from initial wells in the Ruwais Diyab Concession.

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, with the heads of global energy companies to exchange views on the future of the energy sector and the UAE's commitment to ensuring a sustainable future through adoption and implementation of latest innovations, as well as the pursuit of international collaboration in July 2024. Photo: Abu Dhabi Media Office

Adnoc Gas on Wednesday unveiled its dividend target of Dh90 billion through to 2030, which would represent a 30 per cent minimum cumulative return for the period 2025–2030.

Adnoc Gas also said it has signed a 20-year, Dh147 billion gas supply agreement with Ruwais LNG, securing reliable feedstock for the UAE’s largest LNG facility.

“This long-term commitment reinforces Adnoc Gas’ position as a trusted global LNG supplier and provides strong visibility on future cash flow,” the company said.

The logistics and services unit, Adnoc L, also announced its 2025–2030 dividend target of Dh8.1 billion, a 52 per cent increase in annual dividends by 2030.

The company also announced a 50-year contract with Ta'ziz, projected to generate Dh4.8 billion in revenue over the first 27 years.

Merger Update

The deal to merge Adnoc's Borouge Austrian OMV's petrochemical business Borealis, to create Borouge Group International, is on track to be completed by the first quarter of 2026.

Adnoc said it has already received regulatory approvals.

In March, Adnoc and OMV agreed on terms to merge their polyolefins business and create a $60 billion global company.

Adnoc has also signed a share purchase agreement with Nova Chemicals, a unit of Mubadala Investment Company, for the full acquisition of Nova.

On completion of the Borouge and Borealis merger, the new entity is set to take ownership of Nova for $13.4 billion, including debt, which will expand its footprint in North America.

“Adnoc and OMV successfully secured financing from global banks for BGI, amounting to 56.6 billion, including the acquisition of Nova Chemicals,” Adnoc said on Wednesday.

“Synergies in excess of Dh1.8 billion annually have been identified as part of the planned transactions, representing significant new value generation for shareholders.”