Sign in
We have more earnings reports from two Abu Dhabi National Oil Company subsidiaries, as well as district cooling company Empower, Ghitha Holding subsidiary Invictus, newly-listed Investcorp, and a few others.
Abu Dhabi National Oil Company (Adnoc) Gas recorded a net income of USD 4.7 bn in 2023, driven by an increase in production volumes and a positive pricing environment in 4Q 2023, according to the company’s earnings release (pdf). The gas processing unit saw its revenues fall 12% y-o-y to USD 22.7 bn on the back of a “less favorable” pricing environment for the earlier in the year, it said in its earnings report (pdf).
Net income rose 24% y-o-y to USD 1.35 bn in 4Q 2023, while revenues increased 7% y-o-y to USD 6.3 bn during the quarter. The company’s processed volumes grew 5% y-o-y to 912 tn British thermal units (TBTU), enough to provide energy for 6 mn homes for a year.
What they said: “Our strong performance is a testament to the resilience of the company and our ability to maintain strong margins through the commodity cycle,” CEO Ahmed Alebri said.
Dividends: The board confirmed full-year dividend payouts of USD 3.25 bn for 2023. Half of the amount (USD 1.63 bn) was distributed in December 2023, with the remaining USD 1.63 bn scheduled for payment in 2Q 2024. Looking ahead, the company anticipates annual dividend growth of 5% per share over the next four years.
Looking ahead: The company plans to invest some USD 2-2.5 bn in 2024, marking a “substantial increase” from investments in 2023, the company said. Sales are also expected to remain stable at 3.5 TBTU during the year as it looks to boost capacity at its Ruwais Industrial Complex, it added.
Adnoc Drilling saw its net income jump 29% y-o-y in 2023, booking a record USD 1bn (AED 3.6 bn), according to the drilling company’s earnings release (pdf). Revenues climbed 14% y-o-y to USD 3 bn (AED 11 bn) on the back of a 31% y-o-y growth in the company’s offshore jack-up segment and a 37% y-o-y increase in its oilfield services segment, Adnoc Drilling said.
Results for 4Q: Adnoc Drilling’s bottom line leaped 41% y-o-y in 4Q 2023 to USD 329 mn (AED 1.2 bn). The company posted USD 841 mn (AED 3 bn) in revenues for the period, up 15% y-o-y. The company attributed the robust quarterly performance to expanding its operational rigs and a “USD 55 mn reduction in depreciation,” according to the company’s financial statements (pdf).
Looking ahead: The company expects to expand its rig count to 142, including 4 new lease-to-own land rigs, by the end of the year, the company said.
Dividends: The board recommended a dividend payout of USD 358 mn, raising total dividends for the year to USD 717 mn, the company said.
EMPOWER POSTS BUMPER EARNINGS-
Emirati district cooling company Emirates Central Cooling Corporation (Empower) saw its revenues jump 8.7% y-o-y in 2023 to its highest ever at AED 3.04 bn, according to an earnings release. The company’s net profit fell 4% y-o-y to AED 960 mn last year, according to its financials (pdf).
What’s behind the numbers? Empower saw its portfolio grow last year with services spanning over 1.5k buildings in Dubai, according to the statement. The company also opened a new 47k refrigeration ton district cooling plant in the Dubailand Residence complex, and started upgrading its Jumeirah Beach Residence plant with an AED 102 mn investment. Empower also awarded contracts for next-gen cooling plants, expanding to provide a total cooling capacity of 48k tons at Jumeirah Beach Hills.
Major partnerships in 2023: Empower finalized Master Development Agreements with some of Dubai’s biggest real estate developers, including Dubai Maritime City, to provide cooling services for 43 of its buildings with a total capacity of over 63k tons. The company also inked agreements with Sobha Properties, the Anwa residential tower, and the Dubai International Airport.
INVESTCORP’S NET INCOME FELL IN 4Q 2023
Investcorp Capital’s net income stood at USD 21 mn in 4Q 2023, down 34% y-o-y, according to its first set of financial results (pdf) as a listed company. Gross operating income fell to USD 25 mn during the period from USD 36 mn in 4Q 2022.
The company recorded a 17% y-o-y decline in net income to USD 34 mn in 2H 2023, while gross operating income also fell 8% y-o-y to USD 44 mn.
Looking ahead: “We are encouraged by what we see as a positive outlook for the global financial markets in 2024, but with inflationary pressures abating, interest rates expected to come down and general market confidence improving, we believe we are well positioned to continue to deliver returns for shareholders in the second half of the year,” Chief Financial Officer Abbas Rizv said in the earnings release (pdf). The company expects to see increased capital deployment and more exits across its portfolio, the earnings release said.
INVICTUS ALSO REPORTS DECLINE IN NET INCOME-
Ghitha Holding subsidiary Invictus Investment Company saw its bottom line fall 53% y-o-y to AED 213.6 mn, on the back of lower global commodity prices and an increase in investments and expansion, according to the company’s earnings release (pdf). Revenues increased 37.3% y-o-y during the year to a record AED 8.1 bn.
What’s next for Invictus? The company’s focus “will remain on downstream acquisitions in the value chain, with the aim to become a vertically integrated agro-food enterprise.” Invictus also plans to continue its expansion in Africa, following its expansion to Morocco, Tanzania, Mozambique, and Malawi in 2023.
REMEMBER- The company plans to acquire 60% of Zalar Holding’s stake in Moroccan agriculture trader Graderco, pending approvals from the company’s boards.
Dividends: The company plans to pay shareholders AED 45 mn in dividends in 2Q 2024.
MORE EARNINGS-
The Bank of Sharjah’s net losses widened to AED 241 mn in 2023, from AED 156 mnthe previous year, according to the company’s preliminary results brief (pdf). The bank’s net operating income fell 33% y-o-y during the year to AED 308 mn.
National Cement Company turned to the black in 2023, after postingAED 56.3 mn in net income, a turnaround from the net loss of AED 28.7 mn in 2022, according to the company’s preliminary financial results (pdf). Revenues for the year were up 37.2% y-o-y to AED 187.9 mn.
Abu Dhabi-based Eshraq Investments booked a net loss of AED 394kin 2023, compared to AED 589.8 mn in net income in 2022, according to the company’s ADX filing (pdf). Eshraq attributed its net loss to “asset write-downs and revaluation of assets, as part of the commitment made by the new board and management.” The company also saw its revenues from commercial operations fall 23% y-o-y.
Healthcare provider Burjeel Holdings’ bottom line climbed 52% y-o-y in 2023 to AED 540 mn, driven by improved operational performance, according to the company’s preliminary financial results (pdf). The healthcare firm booked AED 4.5 bn in revenues, up 15.6% y-o-y.
ADX-listed Dubai Ins. saw its net income increase 57.5% y-o-y in 2023 to AED 141.9 mn, according to the company’s preliminary earnings report (pdf). The firm’s revenues jumped 79% y-o-y to AED 2.15 bn over the year.
Digital payments firm MBME Group’s bottom line remained flat in 2023 at AED 480 mn, inching up 1% y-o-y, according to the company’s unaudited earnings (pdf).
