Shareholders of ADNOC Gas PLC approved the integrated gas processing company’s proposed dividend of $3.41 billion for 2024, it said Monday.

This is the highest dividend on the Abu Dhabi Securities Exchange (ADX) last year, according to ADNOC Gas, majority-owned by Abdu Dhabi National Oil Co. (ADNOC).

About half was paid September 2024. The remaining $1.7 billion will be distributed in the second quarter of 2025, ADNOC Gas said in an online statement.

“In 2024, we achieved record financial results, advanced major growth projects and declared the largest dividend payment on the ADX, while continuing to capitalize on robust market fundamentals to deliver a total return to shareholders of 19 percent”, commented ADNOC Gas chair Sultan Ahmed Al Jaber.

“As the world increasingly turns to natural gas and LNG [liquefied natural gas], particularly in Asia, we further strengthened our position as a critical enabler of global energy security and a key contributor to the UAE’s economic growth and industrial development.

“ADNOC Gas remains uniquely positioned to unlock further growth while supporting the transformation of global energy systems”.

ADNOC Gas achieved its highest-ever yearly net profit in 2024 with $5 billion, driven by natural gas consumption in the United Arab Emirates.

Net earnings for the fourth quarter of 2024 totaled $1.38 billion, ADNOC Gas’ highest quarterly result since its public listing in 2023, according to results published on the company’s website.

“The company’s strong performance was underpinned by robust demand for domestic gas which supported volume growth and improved pricing”, said ADNOC Gas.

Annual sales volumes grew two percent to 3,616 million MMBtu. ADNOC Gas supplies about 60 percent of the UAE’s sales gas needs, as well as supplies over twenty countries, according to the company.

Adjusted revenue for 2024 rose seven percent year-on-year to $24.43 billion. “The company’s strong top-line performance for 2024 translated into a strong EBITDA growth of 14 percent to $8.65 billion with a high, stable margin of 35 percent”, ADNOC Gas said.

For the fourth quarter, adjusted revenue was $6.06 billion and EBITDA $2.28 billion. “The robust improvement was driven by several factors including a richer mix of gas, producing more liquids, and improved commercial terms in the domestic market”, ADNOC Gas said.

Year-end free cash flow was $4.58 billion, with the October-December period contributing $1.22 billion.

On February 21 ADNOC Gas achieved what it said was the biggest placement on the Abu Dhabi exchange, raising about $2.84 billion from issuing 3.1 billion shares to institutional investors.

The so-called marketed offering, the first in the UAE according to ADNOC, was priced at AED 3.4 ($0.93) per share, about 43 percent higher than ADNOC Gas’ initial public offering (IPO) price of AED 2.37 in March 2023. Raising around $2.5 billion and resulting in a market capitalization of approximately $50 billion, the IPO was the largest on the Abu Dhabi bourse then according to ADNOC.

The marketed offering, which attracted Gulf and international investors, represents four percent of ADNOC Gas’ issued and outstanding share capital and has raised its free float to 9 percent headline, according to ADNOC. ADNOC retains an 86 percent stake in ADNOC Gas.

“A higher free float is also expected to provide a pathway towards inclusion in the Morgan Stanley Capital International Emerging Market Index and the Financial Times Stock Exchange Emerging Market Index, which may take place at the next quarterly review, subject to ADNOC Gas meeting all the relevant inclusion criteria”, ADNOC said. “Index inclusion of ADNOC Gas would contribute to the diversification of the Company’s investor base and significantly broaden awareness of its value proposition”.

BofA Securities, Citi, EFG-Hermes, First Abu Dhabi Bank, HSBC and International Securities acted as joint global coordinators and joint bookrunners.