Adnoc will continue to monetise its non-core assets to reinvest in its main operations, with a focus on its home market, chief financial officer Ahmed Al Zaabi said.
"We will always remain focused on investing in developing our upstream resources. That goes without question, but we will also expand our downstream footprint here in the UAE," Mr Al Zaabi told The National in an interview.
State-owned Adnoc entered an agreement with Apollo Global Management to lease select real estate assets in a $5.5 billion (Dh 20.2bn) deal on Wednesday.
This came after an agreement in June with a consortium of the world’s leading infrastructure and sovereign wealth funds worth $20.7bn to invest in Abu Dhabi’s natural gas pipeline infrastructure.
The infrastructure deal, which came after a similar transaction involving Adnoc’s oil pipelines last year, was the largest in the energy sector so far this year.
Mr Al Zaabi said Adnoc was committed to providing opportunities for local investors as its efforts to attract foreign capital pick up pace.
"There's always going to be a place for local investors," he said.
Adnoc listed 10 per cent of its distribution business on the Abu Dhabi Securities Exchange in December 2017, allowing local investors to participate in the share offering.
In 2019, Abu Dhabi's pension fund also joined the $5bn oil pipeline lease agreement Adnoc signed with global investors led by BlackRock and KKR.
These deals have allowed the company to generate funds for investment from non-core assets at a time when Covid-19 and lower oil prices have placed pressure on budgets in the energy sector.
Globally, the value of new projects approved is set to fall more than 75 per cent this year to $47bn, according to Rystad Energy.
"We are, like everyone else, focused on preserving resources, optimising cost and maximising profitability," Mr Al Zaabi said.
"However, at the same time, we are also focused on our long-term goals and responsibly progressing our strategic projects."
The company's efforts at lowering its operating costs over the past four years have helped build resilience against current market dynamics, Mr Al Zaabi said.
He also remains confident there is more value to be unlocked from Adnoc's asset portfolio.
"We're still reviewing further opportunities and we'll be studying them," Mr Al Zaabi said.
"I'm confident we can unlock more going forward."
The company "will continue to evaluate international downstream opportunities that are attractive and fit within our strategy", he said.
Adnoc has looked at a number of investment opportunities abroad, including a huge project to build a refinery in India with Saudi Aramco to capture market share in one of Asia's fastest-growing economies.
"I must say, though, that our primary focus at the moment is growing and investing in our business here in the UAE,” Mr Al Zaabi said.
Adnoc plans to double its refining capacity and treble its petrochemicals capacity as part of a multibillion-dollar drive to attract foreign direct investment to its downstream operations.
In July, the company formed a partnership with Abu Dhabi’s industrial holding company, ADQ, to develop a chemicals manufacturing hub at Ruwais, the site of its refining and chemicals activity.
Killing of Qassem Suleimani
Killing of Qassem Suleimani
RESULTS
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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Results:
Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.
Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi
Yadoo’s House Restaurant & Cafe
For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.
Golden Dallah
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Al Derwaza
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Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
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