ADNOC Gas records earnings’ rise

2 min read
ADNOC Gas became operational in 2021 through the consolidation of ADNOC Gas Processing, ADNOC LNG and ADNOC Industrial Gas.
  • In an initial public offering early this month, the energy giant raised $2.5 billion by selling a 5 percent stake in ADNOC Gas to investors
  • The company in a bourse filing revealed that its pro forma adjusted core earnings for the last year were $8.7 billion, up from $6.6 billion in 2021

Dubai, UAE–Abu Dhabi National Oil Co. Gas has posted a 32 percent jump in its 2022 core earnings on a pro forma basis, citing a higher pricing environment and increased sales volumes amid strong market conditions.

The energy giant raised $2.5 billion earlier this month by selling a 5 percent stake in ADNOC Gas to investors via an initial public offering.

ADNOC Gas’ pro forma adjusted core earnings for last year came in at $8.7 billion, the company said in a bourse filing, up from $6.6 billion in 2021.

Also read: ADNOC Gas announces final IPO pricing, to raise $2.5 billion

The company turned operational on Jan. 1 through the consolidation of ADNOC Gas Processing, ADNOC LNG and ADNOC Industrial Gas.

Early this month, ADNOC Gas stocks increased their gains and capital profits to more than AED33.8 billion (US$9.2 billion) on the first day of trading after the company’s initial public offering (IPO) at the Abu Dhabi Securities Exchange (ADX).

On Monday, the listing and trading of ADNOC Gas shares began at ADX after the successful completion of the largest-ever IPO in the market and the largest in the world so far this year.

The IPO, which raised total proceeds of AED9.1 billion through the Abu Dhabi National Oil Company, ADNOC, gaining a minority stake representing some five percent of the company’s total issued capital, witnessed the strongest demand ever for an IPO in the UAE, with total demand across all segments being more than AED450 billion, exceeding the target value by around 50-fold.

Shares in ADNOC Gas, which only became operational at the start of this year, were heavily oversubscribed even after the offering was expanded from 4 to 5 percent of issued share capital in response to strong interest.

The final price was set at 2.37 dirhams ($0.65) per share, towards the top of its range, raising about $2.5 billion and implying a market capitalization of around $50 billion.

ADNOC Gas is the biggest flotation yet on the Abu Dhabi stock exchange, which opens at 9:30 am (0530 GMT).

At more than 50 times oversubscribed, it is the biggest demand ever seen for an initial public offering in the Middle East and North Africa, outstripping oil firm Saudi Aramco’s world-record $29.4 billion listing just over three years ago.

The rapidly organized IPO from ADNOC, one of the world’s biggest oil firms, follows last year’s scramble for alternative gas resources after Russia’s invasion of Ukraine, and comes as countries search for cleaner fuels to mitigate global warming.

Energy consultant Roudi Baroudi, who heads the Qatar-based Energy and Environment Holding firm, said he expected brisk demand when the shares start trading.


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