Latest news with #AdnocDistribution
The National
12-06-2025
- Automotive
- The National
Vehicle check-ups key as UAE summer takes toll
A 20-vehicle pile-up on the UAE's north-east in which nine people were injured has once again highlighted the crucial need to promote road safety. Police said the major incident on the road to Dibba Al Fujairah on Wednesday night was triggered when a car caught fire, causing other vehicles to slam on their breaks. Hot summer months on UAE roads can place extreme pressure on cars and buses, making regular maintenance critical to avoid breakdowns and vehicle fires. In 2023, almost 1,300 vehicle fires were recorded on the nation's roads. While not all occurred during the height of summer, high temperatures place vehicle components under more pressure, increasing the risk of fire. Poorly maintained tyres, low engine coolant levels and disintegrating wiper blades are the most common issues garages said they found in cars brought in for repairs from May to September. To help avoid breakdowns and problems on the roads, Abu Dhabi Police and Adnoc Distribution launched a free summer inspection service to keep cars on the road, and avoid unnecessary breakdowns and accidents. At 12 locations across the country, experts are offering free inspections to check a car's vital signs, including engine oil, brake fluid, coolant and air filters. A similar campaign is under way in Dubai, where police are also offering free car inspections until August 31, in partnership with AutoPro. The General Department of Traffic's awareness campaign, 'Summer Without Accidents', offers a free 10-point check-up to assess air conditioning, batteries, radiator hoses, tyres, engine oil and coolant levels, wiper blades and, importantly, the condition of seat belts. Mechanics at one garage in Dubai said there were simple checks that can be done at home every month to help avoid breakdowns and the risk of a road accident during summertime. 'Most people don't take their tyre pressures or even look in the hood, but this is something that should be done at least once a month during the summer,' said Gary Wheeler, general manager of Saluki Motorsport in Al Quoz. 'Some of the most common things we see on vehicles when they come in during the summer is problems with the coolant pipes that may not be immediately obvious when doing a quick check. 'They are usually hidden underneath certain things, like the manifolds. 'Most of the pipes on these modern cars are made of plastic, so they are constantly under expansion and contraction, so often they split. 'These problems happen year round, but it's exacerbated by the summer heat.' Road deaths The summer months can be the most dangerous on UAE roads. On average, there were 273 accidents recorded each month across the country in 2023. But despite fewer cars on the roads in the summer, there were 14 fatalities on the roads in July 2023 – the joint highest number for the year – and 173 injuries. There were a further 22 deaths in August and September, but just 16 in January and February – typically the busiest time of year in the UAE. Poor vehicle maintenance is a contributing factor to road accidents. Mr Wheeler said tyres should be checked regularly as hot roads during summer place them under considerable pressure. 'Tyre technology has got a lot better, and they're now lasting four to five years,' he said. 'The rubber some manufacturers use tends to go hard, so you don't really notice the wear. 'But you will notice radial cracks in the tyre tread area and also on the side. 'A date stamp on the tyre will tell you the month and year of manufacture, and you can find the correct tyre pressure for your vehicle with a quick online check.' Vehicle fire An overheated engine is one of the most common causes of vehicle fire. When fluids like oil and coolant rise in temperature and spill out of circulation areas, they can land on to hot parts of the engine bay and exhaust system, risking ignition. Electrical system failures are another cause of fire, with faulty car batteries holding the potential to produce sparks that can quickly ignite any fluid that may have leaked from cracked pipes. About 20 per cent of vehicle fires globally are traced back to electrical failure or malfunction. In the UAE, figures from the Ministry of Interior show there were 965 car fires in 2023, 154 fires recorded in lorries, 96 involving light transportation vehicles and 35 fires involving motorbikes. There were also a further 23 fires recorded in buses across the country. Vehicle fluids are corrosive, poisonous and flammable – with petrol igniting quickly if exposed to the smallest spark. Petrol that reaches a temperature of 257°C will ignite by itself. Thomas Edelman from Road Safety UAE said bus fires are a particular concern, but changes to fire safety regulations could help reduce their frequency. 'In recent years, the UAE has witnessed a notable number of bus fire incidents, prompting concerns about road safety and the adequacy of emergency response mechanisms,' he said. 'These incidents not only endanger lives but also pose significant challenges to public safety authorities and vehicle manufacturers. 'Understanding the causes and implementing effective fire suppression systems is paramount to mitigating risks and enhancing passenger safety.' Bus blazes In 2022, a bus fire in Karachi, Pakistan, killed 17 people, including 12 children, and injured 20 others. An investigation found the fire broke out in the bus's air-conditioning system, and an emergency exit was not working. In 2021, the UAE issued a standard for fire suppression systems in the engine compartments of all new buses and coaches. 'Most causes of vehicle fires are from maintenance issues or electrical faults,' said Sam Malins, who is chief executive of Reacton, a firm specialising in vehicle fire safety systems. 'Bus fleets with really good maintenance standards have got a lot lower chance of catching fire. 'Buses have a big problem because they've got just one or two exits. 'With 60 or 70 people on board, that can be a major problem when there is a fire on board, with usually a lot of panic.' To retrofit a fire suppression system – that detects and extinguishes any small fire at source – vehicle owners would need to spend about Dh6-7,000, according to Mr Malins. 'In the summer, if you've got fans that aren't working properly to cool the engine, you get excessive heat so it shows how important it is to have regular maintenance ahead of summer,' said Mr Malins. 'Most bus operators do a fairly good job of checking them before summer, but then there's still a lot that don't.' Although less likely to catch fire than petrol cars, electric vehicles are also at risk due to the high powered batteries on board. In 2023, the Ministry of Economy temporarily banned imports of Volkswagen electric cars made in China after dozens of vehicles had been bought, before their release by official local distributors. Although the risk of fire was low, the Volkswagen ID series vehicles had not yet been certified for use in the Gulf region, where summer temperatures can exceed 50C. Electric cars Meanwhile in the US, Chevrolet recalled about 110,000 of its Volt EV model years 2017 to 2022 after problems traced to hardware and software risked potential battery fires. Tashwill Wyngaard, diagnostics technician and EV specialist at Saluki Motorsport, said potential issues can be difficult for the vehicle owner to identify. 'Most electric vehicles are using cooling systems with high tech software and battery management for the thermal protection of the batteries,' he said. 'The best thing owners can do is try to keep the car out of the sun or to park it under cover during the summer. 'It is also helpful to not charge it in the sun and maybe not always charge it to 100 per cent, that way the battery will last longer as well. 'In the extreme heat, as with any chemical reaction, there are always potential downfalls.' The lithium batteries used by electric vehicles are cooled to between 15-30°C, but when these systems fail during periods of high temperatures, problems can occur. 'The vehicle's thermal management system is always trying to keep it within that range,' said Mr Wyngaard. 'What generally happens is the cooling system sometimes leak into the batteries, mixing with the chemicals in the battery. 'That will generally cause the battery to ignite, but that is extremely rare.' This story was first published in August, 2024
Trade Arabia
03-06-2025
- Business
- Trade Arabia
Adnoc Gas joins MSCI Emerging Market Index
Adnoc Gas will be the largest addition to the Index by market capitalisation and joins Adnoc Distribution and Adnoc Drilling which were added to the benchmark in 2021 and 2024, respectively. The company's inclusion follows its successful $2.84 billion marketed offering of 3.1 billion shares in February, which increased the number of shares available to the public by 80% and helped the stock successfully meet key eligibility criteria for entry into the Index. This marks a significant milestone in the Adnoc Gas's ongoing efforts to enhance its global investment profile, attract a broader and more diversified investor base and improve liquidity of its shares. Through their inclusion in the MSCI Index, the three Adnoc Group companies collectively raise both Adnoc's and the Abu Dhabi Securities Exchange's (ADX) global investment profile, while enhancing liquidity in the UAE market and further cementing the UAE's position as an attractive destination for foreign investment. As with Adnoc Distribution and Adnoc Drilling's addition to the Index, Adnoc Gas experienced a surge in trading on the final day before its index inclusion, attracting $469 million in capital inflows. The inclusion of Adnoc Gas in the Index also marks another milestone in Adnoc's efforts to foster growth of the UAE's capital market, which began in 2017 with the public listing of Adnoc Distribution on the ADX. Since then, Adnoc has brought another five of its subsidiaries to the public market, with a current combined market cap of around $140 billion.
Gulf Today
26-05-2025
- Business
- Gulf Today
Adnoc's listed firms post strong results with over $2.3 billion net profit
Adnoc Group's publicly traded portfolio companies combined to deliver over $2.3 billion (Dhs8.4 billion) in first quarter (Q1) net profit, reflecting their resilient business models and ability to generate robust profits in evolving market conditions. Each of the six companies delivered strong financial results in the first quarter, alongside clear progress on strategic priorities aimed at driving profitable growth. Adnoc Distribution delivered first quarter net profit of $174 million (Dhs639 million), up 16 per cent year-on-year, and its highest-ever first quarter EBITDA behind record Q1 fuel sales and strong performance in non-fuel retail. The company added 20 new service stations to its network in the quarter, bringing the total to 915 and putting it on track to meet its target of 40-50 new stations by the end of 2025. Adnoc Distribution also reaffirmed its commitment to its dividend policy, aiming for an annual payout of $700 million (Dhs2.57 billion) equivalent to (20.57 fils per share) or at least 75 per cent of net profit, whichever is higher, through 2028. Adnoc Drilling reported strong first quarter results with revenue up 32 per cent to $1.17 billion (Dhs4.30 billion) year-on-year (y-o-y), EBITDA up 22 per cent to $533 million (Dhs1.96 billion) y-o-y and net profit increasing 24 per cent to $341 million (Dhs1.30 billion) y-o-y. The company also announced new contract awards worth over $2.4 billion (Dhs8.8 billion) providing unmatched multi-year earnings visibility and adding to its multi-billion-dollar revenue pipeline. Additionally, Adnoc Drilling's Board of Directors approved quarterly dividend distributions, resulting in a payment of $217 million (Dhs796 million) for the first quarter of 2025. For 2025, Adnoc Drilling expects to deliver revenues between $4.60 - 4.80 billion (Dhs16.9 - 17.6 billion) and net profit between $1.35 - 1.45 billion (Dhs4.95 - 5.32 billion). Adnoc Gas reported a net income of $1.27 billion (Dhs4.7 billion) for Q1 2025, up 7 per cent year-on-year, and EBITDA of $2.16 billion (Dhs7.9 billion), up 4 per cent year-on-year, driven by increased domestic gas demand and efficient management of the planned shutdown programme, which boosted processing capacity. The company continues to invest to achieve its longer-term EBITDA growth target of over 40 per cent between 2023 and 2029. Significant LNG supply agreements worth $9 billion (Dhs30.24 billion) were signed with Indian Oil Corporation and JERA Global Markets, and capital expenditures increased by 43 per cent year-on-year. On 13th May, Adnoc Gas was selected for inclusion in the MSCI Emerging Markets Index after meeting the necessary criteria. The inclusion will take effect from 2nd June, and is expected to increase cash inflows by between $300-$500 million (Dhs1.0 - 1.8 billion) and attract more international institutional investors. Adnoc Logistics & Services (Adnoc L&S) reported strong Q1 2025 financial results with a 41 per cent increase in revenue to $1.2 billion (Dhs4.34 billion) and a 20 per cent rise in EBITDA to $344 million (Dhs1.26 billion), backed by strong performance across all business segments. The results underpin the resilience of the company's diversified business model where growth from the Integrated Logistics segment offset lower seasonal shipping rates. Adnoc L&S maintained both its 2025 net income and EBITDA guidance and its medium-term guidance, reflecting its continued positive long-term growth and strategic expansion. The Company's 2025 annual dividend is expected to grow 5 per cent in line with its progressive dividend policy. Borouge reported strong Q1 2025 results with net profit of $281 million (Dhs1.03 billion), driven by year-on-year increases of 10 per cent for sales volumes and 7 per cent for production volumes. Revenue grew by 9 per cent year-on-year to $1.42 billion (Dhs5.21 billion), with EBITDA of $564 million (Dhs2.07 billion), maintaining industry-leading margins of 40 per cent. The company also announced it has purchased over 89 million of its own shares since launching its share buyback programme in April, reflecting its strong confidence in its future prospects. Borouge will increase its 2025 annual dividend to 16.2 fils per share, which is expected to be maintained until 2030 by Borouge Group International (BGI) following completion of the BGI transactions that are expected to close in Q1 2026. Fertiglobe announced strong Q1, 2025 results, with revenues up 26 per cent and adjusted EBITDA rising 45 per cent year over year. Adjusted net profit would have been up 306 per cent excluding last year's one-off foreign exchange revaluation gain, driven by higher urea prices and operational gains. The company also launched its 'Grow 2030 Strategy' to deliver $1 billion in EBITDA by 2030, focusing on operational excellence, customer proximity product expansion, and disciplined low-carbon ammonia growth. WAM
Gulf Today
22-05-2025
- Business
- Gulf Today
Adnoc Distribution showcases the innovation of UAE products
Adnoc Distribution, the UAE's largest mobility and convenience retailer, joined the Ministry of Industry and Advanced Technology's (MoIAT) 'Muntajat Watan'na' initiative at this week's 'Make it in the Emirates' exhibition (MIITE), held at the Adnec Centre in Abu Dhabi. Through this programme, Adnoc Distribution is showcasing the quality and innovation of UAE products, with select locally-made items featured prominently in Adnoc Oasis stores across the country until the end of the year. Adnoc Distribution also announced its collaboration with the UAE Federal Youth Authority (FYA) to highlight Emirati-owned SMEs through its Youth Corner initiative, featuring brands such as Emirates Beekeepers, Banna Brothers, LIWA Hot Sauce and NUWA. Products from these home-grown brands will be available for sale as part of a three-month pilot at select UAE locations. Eng. Bader Saeed Al Lamki, CEO of Adnoc Distribution, said, 'By championing local brands and products, and forging strong partnerships with home-grown suppliers, Adnoc Distribution is helping to build resilient supply chains, empower Emirati entrepreneurs and support the UAE's vision for a more self-reliant, sustainable economy.' Adnoc Distribution operated a pop-up Adnoc Oasis convenience store this week at MIITE, which, for the first time, featured 100 per cent UAE-made products for sale. The unique store showcased locally-roasted coffee, food, and speciality beverages, underscoring the company's commitment to supporting the growth of the UAE's food industry. The pop-up store reflects Adnoc Distribution's broader strategy to prioritise UAE-made products across its convenience retail network. Adnoc Distribution also announced a new agreement with Al Ain Farms Group to supply dairy ingredients for Adnoc Oasis coffee, beverages and quick-service food. These initiatives underscore Adnoc Distribution's continued commitment to elevating the UAE's industrial capabilities, empowering local talent, and promoting homegrown businesses. The company remains focused on strengthening the UAE's position as a global hub for innovation and manufacturing excellence, both through Adnoc Oasis and through its other product lines, such as the Adnoc Voyager lubricant line, which is proudly made in the UAE and exported to 47 markets worldwide. Adnoc Distribution also fosters partnerships with both established and emerging UAE brands, including its recently announced strategic partnership with noon, the UAE's leading homegrown digital delivery service. Meanwhile Adnoc Distribution has reiterated its commitment to sustainable industrial development and boosting local content through its participation in the 'Make it in the Emirates' 2025, a leading national platform for driving innovation and empowering Emirati talent. Speaking to the Emirates News Agency, Eng. Bader Al Lamki, CEO of Adnoc Distribution, stated that the company's participation in the forum reflects its strategy to support national products and empower young Emirati entrepreneurs. He noted that Adnoc Distribution is committed to strengthening local supply chains through quality-driven initiatives, including the manufacturing of 'Adnoc Voyager' lubricants in the UAE. He added that additional production lines have been established in Egypt, with exports reaching 47 global markets. Adnoc Voyager is the UAE's leading lubricant brand, and is exported to 47 countries worldwide. Adnoc Distribution recently introduced Voyager Platinum Plus Eco, the UAE's first lubricant product that conforms to API SQ / ILSAC GF-7, the next generation of engine oil standards. Voyager Platinum Plus Eco is one of the first lubricants in the world to adhere to this standard, introduced at the end of March. He stated that by the end of this month, Adnoc Distribution plans to make 'Adnoc Voyager' lubricants officially available through independent distributors in Egypt, further expanding the brand's presence beyond Adnoc Distribution service stations. Adnoc Distribution CEO also noted that partnerships with startups and local brands reflect Adnoc Distribution's keenness to invest in and empower Emirati talent. Adnoc Distribution is taking part in the 'Make it in the Emirates', reinforcing its commitment to the UAE's industrial strategy, youth empowerment, and local economic development. Through a series of strategic initiatives, Adnoc Distribution is showcasing its leadership in supporting UAE-made products, youth entrepreneurship, and sustainable local supply chains. Make it in the Emirates supports the National Strategy for Industry and Advanced Technology by localising supply chains, enabling industrial growth through partnerships and investments, and promoting AI-driven innovation, financing, and startup empowerment. Adnoc also announced that it has signed framework agreements valued at Dhs6 billion ($1.64 billion) with 12 UAE-based companies for manufacturing of critical industrial equipment in the UAE, supporting the 'Make it in the Emirates' initiative.
The National
12-05-2025
- Business
- The National
Barclays initiates coverage of five Adnoc stocks with 'overweight' rating
Britain's Barclays Bank has initiated coverage of five of listed subsidiaries of Adnoc, with an 'overweight' rating on each and expects price appreciation of their stocks in the next 12 months. The five companies – Adnoc Distribution, Adnoc Drilling, Adnoc Gas, Adnoc Logistics & Services as well as Fertiglobe – are assets that are ready to scale, with rapid artificial intelligence and technology adoption, Barclays analysts Lydia Rainforth, Ramachandra Kamath and Mick Pickup wrote in a note to investors last week. 'Together, these companies form a diversified ecosystem poised to deliver robust returns in a dynamic energy landscape,' Barclays said. 'We take the unusual step of initiating on each company with an 'overweight' rating.' An overweight rating on a stock refers to analysts expectations that stock will outperform its industry peers within the next six to 12 months and it is used as an industry yardstick to guide investors on the potential of price appreciation of a particular stock. Barclays said the Adnoc stocks it has included in its coverage universe offer a range of different investment cases with the combination of 'value and momentum as the optimal mix'. The typical return on average capital employed, a financial ratio showing profitability versus the investments a company has made in itself – across Adnoc-covered companies is 20 per cent, which compares to the average of the US and European group at just 11 per cent. Barclays analysts estimate dividend yields average of 4.9 per cent for investors and expects on average 35 per cent potential upside to the stock prices from current levels. 'With Barclays initiating coverage on Adnoc Drilling with an overweight rating, we are proud to now be the most covered stock in Mena, followed by 19 research analysts and supported by 18 'buy' recommendations from across the globe, from China to the US,' said Youssef Salem, chief financial officer of Adnoc Drilling. 'Barclays' broader coverage of five Adnoc-listed companies is also a strong vote of confidence in the Adnoc investment ecosystem and in the UAE as a dynamic, resilient, and increasingly attractive destination for global capital.' Barclays said the wider market negativity across the energy sector spectrum was 'overdone'. The British bank continues to forecast oil and gas demand to grow into the 2030s, notably for oil as non-Opec supply additions slow. 'Concerns about a sustained sharp fall in oil prices will prove unfounded, even in the current tariff backdrop,' Barclays said. The lender's positive rating and target price are a strong endorsement of Adnoc Gas's long-term growth strategy and recent financial performance, said Fatema Al Nuaimi, chief executive of Adnoc Gas. 'Adnoc Gas is targeting 40 per cent Ebitda growth between 2023 and 2029, which, we believe, is a key factor in Barclays recommendation of a buy rating for our stock,' she said.
