Latest News

Exclusive-Abu Dhabi’s ADNOC weighs IPO of logistics and services unit next year- sources

Commodities2 hours ago (Nov 21, 2021 07:00)

© Reuters. FILE PHOTO: A general view of ADNOC headquarters in Abu Dhabi, United Arab Emirates May 29, 2019. REUTERS/Christopher Pike/File Photo

By Hadeel Al Sayegh

DUBAI (Reuters) – State oil firm Abu Dhabi National Oil Company (ADNOC) is weighing an initial public offering (IPO) of its marine services, logistics and shipping arm next year, two sources familiar with the matter told Reuters.

ADNOC Logistics & Services (ADNOC L&S) has been selected for a potential float in Abu Dhabi in 2022, said the sources, declining to be named as the matter is not public.

A deal could follow after testing investor appetite and market conditions, they said.

ADNOC declined to comment when contacted by Reuters on Sunday.

Gulf oil producers are looking at sales of stakes in energy assets, capitalising on a rebound in crude prices to attract foreign investors.

ADNOC, which supplies nearly 3% of global oil demand, is seeking to extract value from businesses it owns and divest assets seen as non-core businesses.

It is also taking advantage of a rally on the Abu Dhabi equities index, which is up about 65% this year, the best-performing market in the Gulf region.

ADNOC in September offered an 11% stake in its drilling business, which raised more than $1.1 billion from investors. ADNOC and chemicals firm OCI raised $795 million in October through the public share sale of its fertiliser venture Fertiglobe.

ADNOC L&S delivers crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to its international customers.

It was created in 2016 following a merger between Abu Dhabi National Tanker Co, Petroleum Services Co and Abu Dhabi Petroleum Ports Operating Co.

The unit has a fleet of over 240 owned and chartered vessels, which include tankers and very large crude carriers. It is also the only licensed operator to service all petroleum ports in Abu Dhabi.

The business is an essential unit of ADNOC, which is seeking to boost its crude oil production capacity to 5 million barrels per day by 2030.

The unit also operates feeder vessels that transport cargo on behalf of ADNOC and other customers. Shipping rates for cargo have soared in the past year as the coronavirus pandemic created bottlenecks and disrupted supply chains.

Exclusive-Abu Dhabi’s ADNOC weighs IPO of logistics and services unit next year- sources

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

You may also like

Leave a reply

Your email address will not be published.

More in Latest News