Kuwaiti crude oil rose by US$1.28 during Thursday’s trading sessions to close at US$84.33 per barrel, compared with US$83.05 pb the day before, Kuwait Petroleum Corporation (KPC) said Friday.

According to the Kuwait News Agency (KUNA), Brent futures also went up by $59 cents to $84.50 pb and West Texas Intermediate by $41 cents to $78.06 pb.

The Abu Dhabi Exports Office (ADEX), the export-financing arm of Abu Dhabi Fund for Development (ADFD), signed two green finance agreements with the government of Angola, valued at AED445 million (US$121.3 million). The financing is provided in cooperation with Standard Chartered Bank.

One agreement, valued at AED330 million (US$90 million), relates to the acquisition of an analytical platform, main data centre, backup data centre and national cloud platform to strengthen the Angolan IT sector.

The project will be carried out by Presight, a G42 company, which specialises in big data analysis powered by artificial intelligence and cloud computing.

The other agreement, valued at AED115 million (US$31.3 million), will allow Mark Cables, a UAE company specialised in manufacturing cables, lighting, water, and electrification projects, to install and maintain street lights in the cities of Luanda, Malanje, N’dalatando and Uíge.

The two agreements were signed by Mohamed Saif Al Suwaidi, ADFD Director-General and Chairman of the Exports Executive Committee of ADEX; Vera Esperança dos Santos Daves De Sousa, Minister of Finance in Angola; Thomas Pramotedham, CEO of Presight; and Faruq Muhammad, Global Head of Structured Export Finance of Standard Chartered Bank.

The ceremony was attended by Khalifa Al Qubaisi, ADFD Deputy Director-General; Alexis Bayigamba, Chairman of Mark Cables; Khalil Al Mansouri, ADEX Acting Director-General; and several other officials.

Al Suwaidi said, “The two agreements constitute an important starting point for a new phase of developmental cooperation with the government of Angola. They contribute to building efficient partnerships to support the development of modern, environment-friendly infrastructure in Angola in cooperation with well-established UAE companies, as well as companies based in Angola. These activities will also contribute to the efforts to diversify the UAE’s economy.”

He expressed hope that ADEX’s cooperation with the Angolan government would exponentially develop in the future, which would economically benefit both the UAE and Angola, as well as UAE enterprises through accelerated commercial and economic activities.

De Sousa expressed delight at the agreements, which she said would broaden the horizon for developmental cooperation between Angola and the UAE.

She thanked the UAE for its initiative to develop economic cooperation with her country, acknowledging that the Angolan government would immensely benefit from the agreements with ADEX as they would enable it to develop data, as well as financial and educational services, in addition to install modern and sustainable street lighting systems in major Angolan cities.

CEO of Presight said, “We are very pleased to be a part of Angola’s digital transformation that will unlock growth and support the nation’s economy. This agreement will contribute to accelerating Angola’s digital vision and set the path for its future prosperity.

“The UAE has always been a strong ambassador for digital transformation, and we at Presight are proud to play our role in realising this mission. We now look forward to working closely with the Angolan government and other stakeholders for a mutually rewarding relationship.”

Francesco De Martino, Group CEO of Mark Cables, said, “As part of the street lamination project, we will export lights, poles, cables, and transformers to Angola. These cables and transformers are manufactured in the UAE. The rest of the material will also be procured from the UAE,” he said.

De Martino also praised ADEX for its professionalism and competitive loan facility. “All this makes ADEX not only our partner of choice, but the most essential component in our effort to implement the important green project, which will enhance safety, security, and the quality of life in the capital. We would love to have a long-term partnership with ADEX for many such meaningful initiatives,” he added.

Faruq Muhammad of Standard Chartered Bank said, “We are extremely proud to join hands with ADEX and structure facilities that support the energy efficiency efforts in Angola and assist UAE companies like G42 and Mark Cables to expand into international markets through utilising our global network.

“Standard Chartered’s unique footprint accompanied by the bank’s on-ground expertise across the Middle East and Africa region and unrivalled know-how of Export Credit Agencies (ECAs), connect our clients globally and provide them with seamless access to credit that fulfil their financing needs.”

ADNOC Distribution (ADNOCDIST) on Thursday reported strong earnings for full-year 2022, with year-on-year growth in EBITDA by 15 percent to AED3.52 billion, and net profit by 22 percent to AED2.75 billion for 2022.

The company’s total fuel volumes continued to increase during the year, recording an 8 percent year-on-year growth through 2022 – with commercial fuel volumes up by 19 percent.

Among the key factors contributing to the growth in fuel volumes are the continued economic expansion across the UAE, the ongoing ADNOC service station network expansion nationwide, and higher customer traffic.

Positive outlook following strong 2022 results

CEO of ADNOC Distribution Bader Saeed Al Lamki, “The company has demonstrated robust financial and operational performance throughout 2022. We have sustained our growth trajectory while generating strong cash flow and maintaining a solid financial position. ADNOC Distribution’s priority remains to accelerate achieving sustainable growth and building incremental shareholder value through efficient capital allocation.”

Following the record earnings in 2022, ADNOC Distribution’s growth momentum is expected to continue through 2023 – a year in which the company is targeting to achieve a minimum $1 billion in EBITDA – on the back of continued network expansion and higher non-fuel retail contribution. In its ongoing quest to futureproof the business, ADNOC Distribution continues to explore potential growth opportunities and new revenue streams created through energy transition, including new mobility solutions such as electric vehicle charging.

ADNOC Distribution has successfully renewed its supply agreement with ADNOC for a new five-year term in 2022, reaffirming its strong value proposition driven by predictable margins and highly cash generative core business. It also demonstrates strong and ongoing support from the majority shareholder, ADNOC.

The company continued its growth trajectory in 2022 by committing to deliver modern, digitally-enabled fuel retail convenience to customers and communities across the UAE. Additionally, 68 new ADNOC service stations were opened in 2022 across the UAE and Saudi Aarabi, with 21 openings during the fourth quarter, including a state-of-the-art flagship location in the heart of Dubai on Shaikh Zayed Road. The company’s international service station network reached a total of 568 sites, including 502 in UAE and 66 in KSA as of 31 December 2022.

Convenience store sales continued to gain momentum throughout 2022, with non-fuel retail transactions increasing by 15 percent during 2022. This was mainly driven by the company’s commitment to its non-fuel retail strategy, while focusing on offering an upgraded customer experience and modernizing the ADNOC Oasis retail space with of 42 additional stores refurbished. Initiatives linking ADNOC Rewards spends across service stations – including fuel, lube change services, convenience store purchases, and car washes – also contributed to the growth. The company maintained its position as the UAE’s largest convenience store operator through the ongoing expansion of its ADNOC Oasis network, with a total of 362 stores by the end of 2022 – up from 346 at the end of 2021.

Last year also saw ADNOC Distribution further advance its international expansion by partnering with TotalEnergies, announcing a milestone transaction to acquire a 50 percent stake in TotalEnergies Marketing Egypt, one of the top four fuel retail operators in Egypt. The acquisition aligns with the company’s vision to establish ADNOC Distribution as a regional fuel distribution leader. The acquisition is expected to be completed in Q1 2023 pending satisfaction of certain conditions, including customary regulatory approvals.

Al Lamki added, “The year was marked by several milestones in ADNOC Distribution’s history, including the signing of our largest-ever international acquisition in Egypt. We also opened a flagship service station in Dubai – our first on Sheikh Zayed Road. Furthermore, we showcased our ability to provide a cutting-edge digitally-enabled customer experience, while also achieving long-term sustainable growth to generate attractive shareholder returns.”

Futureproofing the business

ADNOC Distribution’s drive to deliver long-term shareholder value is underpinned by a commitment to futureproof the business, including initiatives such as the recently announced partnership with TAQA, one of the largest listed integrated utility companies in the EMEA region, to establish E2GO. The new mobility joint venture will build and operate electric vehicle services infrastructure in Abu Dhabi and the wider UAE. The company also plans to expand its sustainability-driven efforts to futureproof the business, including installing solar panels to power service stations and use biofuels in its fleet of vehicles in 2023 and beyond.

On the sustainability front, the company has also committed to decarbonizing its operations and reducing carbon intensity by 25 percent by 2030. It also announced converting an existing USD$ 1.5bn (AED5.5bn) term loan into a sustainability-linked one, demosntrating commitment to embrace sustainability across its day-to-day operations.

Attractive value proposition and shareholder payback

ADNOC Distribution remains committed to delivering sustainable, profitable growth and attractive shareholder returns. In line with its approved dividend policy, the Company’s Board of Directors has recommended distributing a cash dividend of AED1.285 billion (10.285 fils per share), for the second half of 2022, which will be submitted to the company’s shareholders for approval at the Annual General Assembly Meeting scheduled for 2023. Subject to shareholders’ approval, total dividend for the fiscal year 2022 is expected to be AED2.57 billion (20.57 fils per share). This would translate to a 4.6% annual dividend yield for 2022 (based on a share price of AED 4.44 as of closing on 8 February 2023).

The company paid half of the 2022 dividend in October of last year, and expects to pay the second half in April 2023, subject to shareholders’ approval.

The company’s dividend policy for the years thereafter sets a dividend equal to at least 75% of distributable profits. ADNOC Distribution is unwavering in its commitment to fulfilling its strategic goals and providing long-term sustainable returns for its shareholders.

 Kuwaiti crude oil rose by US$1.57 during Wednesday’s trading sessions to close at US$83.05 per barrel, compared with US$81.48 pb the day before, Kuwait Petroleum Corporation said Thursday.

According to the Kuwait News Agency (KUNA), Brent futures also went up by US$1.40 to US$85.09 pb and West Texas Intermediate by US$1.33 to US$78.47 pb.