Adnoc Gas set to join FTSE Emerging Index in move expected to boost investment by $250m

Inclusion will take effect on September 22

Adnoc Gas says it is diversifying its institutional investor base and elevating its global investment profile. Photo: Adnoc

Adnoc Gas will be added to the FTSE Emerging Index later this month, a move expected to channel about $250 million in investment into the Abu Dhabi company’s stock.

The co-option, which will take effect on September 22, follows the company’s inclusion in the MSCI Emerging Markets Index in June.

“Joining the FTSE Emerging Index is a strong endorsement of Adnoc Gas’ fundamentals and consistent delivery on our strategy," Fatema Al Nuaimi, chief executive of Adnoc Gas, said on Monday in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

"This achievement reinforces our ambition to diversify our institutional investor base, enhance liquidity, and elevate our global investment profile."

Adnoc Gas said the move will also boost liquidity in the ADX, broadening its institutional investor base.

The FTSE Emerging Index is widely tracked by international investors and measures the performance of large and mid-cap companies across advanced and secondary emerging markets within the FTSE Global Equity Index Series.

Adnoc Gas is a key player in parent company Adnoc’s strategy to enhance its natural gas production capacity and expand global liquefied natural gas exports. It supplies about 60 per cent of the UAE’s gas sales needs and supplies end-customers in more than 20 countries.

Adnoc Gas reported a 16 per cent annual jump in its second-quarter profit to a record $1.39 billion, despite a lower oil price environment, capitalising on operational and cost efficiencies.

The company, which has access to 95 per cent of the UAE’s natural gas reserves, is looking to boost exports of products such as LNG, liquefied petroleum gas and naphtha.

Adnoc Gas aims to more than double its LNG output capacity by 2028 through the strategic acquisition of the new Ruwais LNG plant from parent company Adnoc and possibly obtain assets in Europe, India, China and South-East Asia, it said last year.

"With a robust pipeline of strategic projects, including $20 billion in planned capital expenditure, and a clear pathway to deliver over 40 per cent Ebitda growth by 2029 versus 2023, we remain committed to creating long-term, sustainable value for our shareholders," Ms Al Nuaimi said.

It is the third Adnoc company to have been admitted to the MSCI Emerging Markets Index, after the inclusion of Adnoc Distribution and Adnoc Drilling.