Exclusive – Abu Dhabi’s ADNOC weighs logistics and services unit’s IPO next year – sources By Reuters


© 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-owned Abu Dhabi National Oil Company (ADNOC) is considering an initial public offering (IPO) of its shipping, logistics and shipping services next year, two sources familiar with the matter told Reuters.

ADNOC Logistics & Services (ADNOC L&S) has been selected for a possible float in Abu Dhabi in 2022, the sources said, 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 considering selling stakes in energy assets, taking advantage of a rebound in crude prices to attract foreign investors.

ADNOC, which supplies nearly 3% of global oil demand, seeks to extract value from the companies it owns and to divest assets considered secondary activities.

It is also benefiting from a rally in the Abu Dhabi stock index, which is up around 65% this year, the best-performing market in the Gulf region.

ADNOC offered an 11% stake in its drilling business in September, which raised more than $ 1.1 billion from investors. ADNOC and chemicals company OCI raised $ 795 million in October through a public sale of shares in its fertilizer company Fertiglobe.

ADNOC L&S delivers refined, dry bulk and liquefied products 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 serve all of Abu Dhabi’s oil ports.

The company is a core unit of ADNOC, which seeks to increase its crude oil production capacity to 5 million barrels per day by 2030.

The unit also operates supply vessels that transport cargo on behalf of ADNOC and other customers. Freight shipping rates have skyrocketed over the past year as the coronavirus pandemic created bottlenecks and disrupted supply chains.

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