The Investment Case of ADNOC Gas

[Music] good afternoon um let me talk first a little bit about abnor gas and what it is about when you process oil and gas and you separate the two the gas that comes out of the reservoir needs to be treated and that is exactly what we're doing and the gas that is treated is only done by alnal gas in the UA so we're uniquely positioned to provide energy to the nation what we do is we have large scale infrastructure in the South think about ra think about areas like mea where our large scale infrastructure is as I said making sure that the lights stay on access to water but we also provide feed stock for the chemical uh sector for example now most of our volumes about 23s stay inside the uie but onethird of our products are exported and when you think about gas export LPG but also think about LNG natural gas liquefied think about propane think about butane think about NAFTA a whole range range of products and the export is quite profitable for us so 2/3 of the volumes stay in the uie that's one3 of the revenue the export one3 of the volume is 2/3 of the revenue so that is an area where we try to balance the interest of the nation including the self-sufficiency of energy by 2045 and the demand of our International customers um you see some of the numbers and I'm quite proud to say that that infrastructure that we have Works day in day out in an extremely reliable manner it is extremely important to make sure that you make the most of what you've got and you do it in a consistent manner if we look at the international market it is not just about price when you look at LG we serve our custom customers in the Far East in China in India and it's not about only price it is security of Supply that is at least as important for our customers as is competitive pricing for our product and yes they're often labeled green as well to make sure that we're prepared for the future now if we look at the future you have to believe in the growth of the economy in the UA if you believe in that growth that is in a very simple manner the investment case for no gas because we're the only ones who process that gas that is so much needed to fuel the economy as I said we're looking at the power sector the lights the water but also think about Industries the steel the El ium petrochemicals barou my colleagues are here as well right we Supply them with ethane believe in the growth of the uie economy and with it the population growth you see the investment case for nor gas now a little bit more about the business model we obtain the gas that raw gas from adnor and this is done under a longterm term Supply Arrangement that gives you stability and at the same time in the uie we have our customers who've entered into long-term arrangements as well which gives us a pretty stable business model but at the same time with our exports we're exposed to Brent the oil price marker which gives you the uptick in your revenues and your profitability right so in that sense it is a a value proposition whereby you have access indirectly to the growth in oil and gas production in the UA and at the same time on the sales side benefit from growth in demand in the UA but also International markets and in particular LG right we are a big company our market cap is about $73 billion so we're not small and with that we have a responsibility to our shareholders where we simply cater for the future and we invest in the coming years at least $1 155 billion do in new infrastructure but at the same time we balance that with competitive returns for our shareholders our dividend is $3.4 billion and every year that grows by 5% and in that way we make sure that we balance the amount of money that we invest in the company and in the future whilst at the same time providing our shareholders with a competitive return talking about growth we heard other companies speaking about growth as well as I said you believe in the GDP growth of the uie you believe in the investment case f no gas our growth in the first two years is as CFO for me is going to be very simple we get more feed stock we have more demand and we have the infrastructure in place to handle all these increased feet stocks sit back and relax to a certain extent make sure everything works right but it's the cheapest way of growing your business in a capital light way however given that the growth is such we need to start planning ahead and we need to cater for those additional volumes either on the input side or on the sales side So today we're are looking at what is needed when we reach the maximum of our capacities and that will be somewhere around the end of 25 mid 26 so today we start investing we start planning for that and we have some huge projects on this way some of them we decided we want to execute them two big ones we have not taken that investment decision and that could potentially increase our investment to something like $25 billion so again you talk about size and you talk about moving the needle you talk about impact both on the returns but also on the economy right if we look at these project let me highlight one or two from you if you look at the larger projects and they are called Rich gas development Bas all it does is making sure you're ready for the future that you can process that gas and what is equally interesting is that some of that gas once it's processed needs to be liquefied today we've got 5.8 uh million tons per am production capacity for our LG that is exported from offshore D Island we're now going to build a new plant that will export in rway it is 9.6 mtpa so it means we double our production for LNG and LNG is an extremely strong and attractive Market it is something I said before that we mainly export to the east but because of the geography of Abu Dhabi we can also export our LNG to Europe and we've done that on several occasions today we announced another transaction with a buyer in Germany for example and this is still driven by market sentiment we have a mix of short-term contracts where we play The Market East West was the Arbitrage but we also have many long-term contracts again security of Supply is extremely important here adog gas has not ever missed one delivery even in challenging times and that reputation is extremely important to us so when we look at the the future we have delivered since our IPO in March 23 a 50% TSR and we will continue to grow the business our eida will grow by 40% in the coming 5 years the growth is not just Capital heavy it is also Capital light in the coming two years so this is not a company where you have to wait for this well-known hockey stick and the promises growth and returns some later it is equally faced over 5 years and underpinned by that a dividend growth of 5% every year so with that I want to hand back to you and thank you very much for your time uh ad guest by the Shar [Music]