3 Emirati energy companies listed on the local stock markets, namely: “TAQA”, “ADNOC Distribution” and “ADNOC Drilling”, distributed a total of 6.85 billion dirhams in cash dividends to their shareholders for their performance in the past year, while “Dana Gas” distributed 244.84 million dirhams for the first half of last year.
The energy sector is the main beneficiary of the return of commercial activity in major economies during the past year, especially in light of the significant rises in oil prices globally with increased demand, which was evident in the performance of the four energy companies for the year 2021, which were able to double their profits with a growth rate Almost 100%.
A survey conducted by “Vision” on the performance of the four companies showed an increase in their profits during 2021 to 11.59 billion dirhams, compared to profits of 5.89 billion dirhams in 2020, an increase of 96.6%.
TAQA had the largest share in the value of profits during the past year, achieving about 6 billion dirhams, with a growth rate of more than 100% over the previous year, while Dana Gas managed to abandon its losses during the past year, achieving profits of more than one billion dirhams, while ADNOC Distribution’s profit declined slightly during the year.
energy
Abu Dhabi National Energy Company “TAQA” delivered a strong performance during 2021, supported by its business in the utilities sector and driven by improvement in commodity prices. The past year also witnessed the start of TAQA’s implementation of its “2030” strategy, which aims to achieve returns and sustainable growth.
The net income (“TAQA” share) amounted to 6 billion dirhams, an increase of 3.2 billion dirhams, with a significant additional contribution from the oil and gas sector, in addition to the fact that the year 2020 had included a decrease in the book value of oil and gas assets of 1.5 billion dirhams after tax.
Revenues for the year 2021 increased by 11% to reach 45.7 billion dirhams, compared to the same period in the previous year.
The company also recorded strong levels of free cash flows, which amounted to 17.8 billion dirhams, which reinforced the improvement in cash flow, after the full payment of the company’s credit facilities during the first half of the year, and the total debt amounted to 64.9 billion dirhams, down from the level of 76.0 billion dirhams. At the end of 2020, the Group’s credit metrics further improved.
The Board of Directors of “TAQA” proposed distributing the last batch of cash dividends of 1.2 billion dirhams (1.1 fils per share), and this is the fourth and final batch of quarterly cash dividends planned for the fiscal year 2021, bringing the total distributions for the fiscal year to 3.1 billion dirhams. This is in accordance with the company’s dividend distribution policy on a quarterly basis.
Dana Gas
Last year, Dana Gas’ net profit amounted to $317 million (AED 1.16 billion), compared to a net loss of $376 million (AED 1.38 billion) in 2020.
This increase was mainly driven by the rise in oil prices and the improvement in operational performance, in addition to other sources of income, which included the amount that the arbitral tribunal ruled in favor of the company at a value of $608 million (AED 2.23 billion), according to a statement issued by the company to the Abu Dhabi Securities Exchange.
These profits were offset by provisions related to impairment of assets in the UAE and impairment of goodwill amounting to $451 million (1.65 billion dirhams).
Against the background of the company’s strong and continuous financial performance, the Board of Directors of Dana Gas decided to recommend the distribution of 7 fils per share annually in two installments of 3.5 fils every 6 months, which increases the company’s annual cash dividends by 27% compared to the previous distributions of 5.5 fils per share. The first interim dividend of 3.5 fils was distributed in January after obtaining shareholder approval during the month of December.
ADNOC Distribution
ADNOC Distribution, the leading company in the UAE in distributing fuel and operating retail stores and listed on the Abu Dhabi Securities Exchange, announced that its profits before interest, tax, depreciation and amortization for the year 2021 amounted to 3.1 billion dirhams, with a net profit of 2.2 billion dirhams. During the last quarter of 2021, EBITDA was AED 802 million, while net profit was AED 571 million.
The company demonstrated a strong and resilient performance during 2021 despite the fluctuations due to the Covid-19 virus. After closing the fiscal year, ADNOC Distribution maintained its strong financial position, which qualifies it to continue its efforts to expand locally and internationally in line with its smart growth policy.
Within the framework of the established dividend distribution policy, the Board of Directors of ADNOC Distribution proposed the distribution of cash dividends of 1.285 billion dirhams (10.285 fils per share) for the second half of 2021, equivalent to 350 million dollars.
ADNOC Drilling
ADNOC Drilling announced an 8.2% increase in revenues for 2021, reaching 8.33 billion dirhams, compared to the same period last year.
Earnings before interest, tax, depreciation and amortization for the full year amounted to 3.85 billion dirhams, with a margin of 46.1%, as the company made significant progress in enhancing cost efficiency, while the net profit for the full year amounted to 2.22 billion dirhams, an increase of 6% on an annual basis.
The Oilfield Services segment has performed well throughout the year, driven by higher activity thanks to the continuous expansion of the sector, with a well-developed profit margin. The segment’s revenue for the whole of 2021 increased by 48% year-on-year to reach AED 1.21 billion, and revenue for the fourth quarter of the year reached AED 360 million, an increase of 44% year-on-year.
EBITDA in the fourth quarter of 2021 grew by 2.7% year-on-year, and EBITDA margins increased during the same period to reach 45.6%, which reflects the management’s active efforts to reduce central expenditures in this quarter of the year.
The Board of Directors recommended the distribution of final dividends for the second half of 2021, amounting to 1.19 billion dirhams, bringing the total distributed profits for the fiscal year to 2.52 billion dirhams.
profit growth
The financial analyst and international chief executive of business development at the Iraqi Islamic Bank for Investment and Development, Ali Hammoudi, said that the country’s energy companies achieved strong profits in 2021, supported by the rise in oil prices by more than 50%.