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00:00 We have reached the highest level of contracts and profits before the cancellation of taxes in the company's history
00:06 with $886 million in revenues and $347 million in revenues before the cancellation of taxes and interest.
00:14 This is the result of the growth, as I mentioned, in all sectors,
00:16 including the maritime sector, which is growing more than 51%
00:19 and therefore the total growth in profits before the cancellation is 31% year on year.
00:24 This exceeds the market share for the third quarter on the balance sheet.
00:29 This will also increase the growth.
00:33 As I mentioned, the new balance sheet is $71 billion,
00:37 one of the largest contracts for the bank.
00:40 This is just the beginning of the collection of unconventional funds,
00:43 which will start with 144 billion, but then will extend to thousands of dollars,
00:47 and therefore billions of future contracts for this sector,
00:52 plus our strategic partnership with Al Fadabi,
00:57 which has completed its first deal, plus the balance sheet on three additional deals.
01:02 This will add more than $100 million in the future to the net profits of our partnership with Al Fadabi.
01:11 All this translates into, as I mentioned, an increase in the distribution of investors,
01:15 which will be at least $778 million this year,
01:19 and God willing, this will also increase in the future and will continue to be at least 10% every year.
01:25 This is also the result of the overall growth in the number of investors.
01:28 Today, we have 137 investors.
01:31 This is the largest fleet.
01:33 Today, this fleet has reached a net profit of 4.85 million per day from production energy,
01:42 which is very close to the 5 million target at the lowest,
01:46 and therefore, it is a growth in all sectors, both in this quarter and, God willing, in the future.
01:51 Mr. Youssef, before the explanation of the agreement with Al Fadabi,
01:55 what is the goal of the new strategy on distribution, which is at least 10% annually?
02:02 And does the company's financial and cash center contribute to achieving this strategy and sustaining these distributions?
02:12 Yes, we have a very special feature in the market,
02:16 which is that we have long-term contracts that last for 15 years,
02:21 and these contracts damage more than 3.8 million dollars annually,
02:26 and therefore, we have the ability to have these high distributions for many years.
02:32 That is why we say in the new policy that it will be at least 10% or at least 5% annually.
02:38 At the same time, we have very high growth rates,
02:41 and that is why we grow more than 30% year on year.
02:44 And as you mentioned, we have more than a billion dollars in liquidity between the existing cash
02:51 and the reliable financial facilities that we have not yet used.
02:55 Therefore, our ability to balance between very fast growth and strong distributions
03:01 is a very special and different factor compared to any other company.
03:06 With your reference to the contracts, for 2024,
03:11 how many contracts are expected to be signed,
03:14 and are there any expected intentions for this year,
03:18 as well as your strategy for the next 10 years?
03:22 Yes, currently, in 2024, the total value of the contracts, which will only be damaged in 2024,
03:28 will exceed 3.6 billion dollars only this year.
03:32 Most of these contracts will last for 10 to 15 years,
03:36 so the total value of these contracts exceeds tens of billions of dollars.
03:41 And this is not yet the new stage of monitoring for non-traditional resources.
03:46 We are talking about 1.7 billion dollars, this is only the first stage, only 144 billion.
03:51 Adnok has more than 200 billion barrels of non-traditional oil reserves,
03:58 more than 400 trillion cubic meters of non-traditional gas.
04:02 So the next 10 billion contracts will increase even more in the coming period.
04:07 All this, Mr. Youssef, may require more investment in the excavators.
04:11 Today, how many excavators does the company own,
04:15 and what is the estimated size of the expansion of this number
04:19 within your internal and external expansion plans?
04:22 Yes, this year we are investing about 950 million dollars in additional excavators.
04:27 We have already reached 137 excavators by the end of the previous quarter.
04:31 By the end of this quarter, we will have about 140 excavators.
04:35 By the end of the year, we will reach and exceed, God willing, 142 excavators.
04:41 Among them, 6 excavators are working on non-traditional and non-traditional monitoring.
04:46 The rest of the excavators are on traditional resources.
04:49 This line will increase significantly in the coming period.
04:51 One is due to the non-traditional monitoring contracts.
04:54 Two, even from the traditional side, were supposed to reach 5 million barrels in 2030.
04:59 After that, it became 2027.
05:01 Today, in the first quarter of 2024, we have already reached 4.85 million barrels.
05:07 Therefore, we are working to grow rapidly and the capacity increases rapidly.
05:10 And the more this capacity increases, the more excavators will be needed.
05:14 Therefore, this model will continue.
05:16 In addition, we have 49 excavators of these.
05:18 Not only do we offer the excavation, but we also offer the complete services.
05:22 Therefore, we can offer the client a full barrel from start to finish.
05:27 Mr. Youssef, back to what I mentioned in your first answer about your investments with Alfa Dhabi
05:33 in terms of oil services technology.
05:36 How much is this investment estimated today?
05:39 Is it not only aimed at the UAE, but also to the outside world in general?
05:45 Yes, it is an investment worth about 1.5 billion dollars.
05:49 The total investment we are working on with Alfa Dhabi is the second investment.
05:53 The companies we acquire and invest in are international companies.
05:57 They have a very large network of clients and operations, whether in North America, Europe, and other parts of the world.
06:03 But at the same time, they are all technologies that we get to use here in the UAE and in the region.
06:09 On the one hand, we benefit from international operations.
06:11 On the other hand, we can support the energy march in the UAE and the region.
06:15 We can bring new technologies that we have and that we have intellectual property for, not just users.
06:23 Yes, is your expansion plan in place?
06:26 What about the upcoming foreign investments, such as Jordanian markets?
06:31 Yes, the expansion plan is in place and is being completed, whether inside the UAE or outside the UAE in regional markets.
06:39 As you mentioned, we have a working drill in Jordan.
06:43 We also have in the near future, God willing, we will reach the end of the phase of registration in Kuwait, Oman, and other markets,
06:53 plus all the international markets in which we work from the companies under Alfa Dhabi's partnership.
06:58 We are continuing the path of the state's growth.
07:01 The UAE will always remain the main factor that generates the most returns,
07:08 and this is what we have in the largest possible level, but it will always be added to the international operations,
07:13 and the two are constantly combining together.
07:16 In light of these expansionary steps, how do you deal with the risks of raising funding costs in light of the previous rise in interest rates?
07:26 Or do you have traditional and non-traditional sources of funding for these expansions?
07:32 Yes, there are two parts. The first part is that we will benefit from it in the near future,
07:36 because since the interest rates have reached the highest rates, and in the future the consensus will begin that these rates will decrease,
07:43 this will form another benefit for us, that in the future the cost of our interest will decrease,
07:49 and this will be another payment for us to increase our profits in the future.
07:54 In addition, we have the ability to be one of the least profitable in the region,
08:00 because in the end we are the main way to extract oil and gas in the UAE,
08:06 and the main support for the state's oil and gas budget comes from the oil and gas purification.
08:13 This is a very special place for both investors and investors,
08:19 because we are providing them with a risk-free rate, one of the lowest risk rates in the market,
08:24 as a result of the value of the company that offers it and its ability to increase the length of its expansion.
08:29 We thank you, Mr. Yousef Salem, and you, the Chairman of the Executive Board of Financial Affairs at Adnoc,
08:35 for the UAE Expansion. You were with us from Abu Dhabi, first on CNBC Arabic.