Friday, 11 February 2022

Adnoc: Biggest Energy Firms in #UAE Boost Spending on Surging Demand - Bloomberg

Adnoc: Biggest Energy Firms in UAE Boost Spending on Surging Demand - Bloomberg

The largest listed energy companies in the United Arab Emirates are ramping up spending to meet soaring demand for everything from fuels to electricity.

Adnoc Drilling Co. boosted capital expenditure by 34% last year to $505 million, the unit of Abu Dhabi’s government-owned oil giant said in an earnings statement on Friday. Abu Dhabi National Energy Co., the government-owned utility known as Taqa, raised capex by 26% to $1.3 billion to build new power lines.

Investment plans by state-owned oil producers illustrate a stark contrast in their priorities with those of the oil majors, who are opting to return more cash to shareholders. The UAE and Gulf neighbors like Saudi Arabia, Iraq and non-OPEC member Oman are working to get the most out of their reserves before global demand for oil and gas wanes over the coming decades.

For now, spending is likely to continue as a blistering commodities rally highlights a global shortage in commodities from oil to gas and metals, with Goldman Sachs Group Inc’s veteran analyst Jeff Currie saying he’s never seen anything like it. Adnoc Drilling also reiterated its guidance to achieve a 5% annual increase in dividends per share through 2026.

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