LIVE MARKETS-Abu Dhabi's Golden Goose - ADNOC's dual energy strategy
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ABU DHABI'S GOLDEN GOOSE - ADNOC'S DUAL ENERGY STRATEGY
In today's volatile energy landscape, Abu Dhabi state oil giant ADNOC's ADNOCDIST.AD ecosystem of five interconnected companies has captured Barclays' attention.
The brokerage initiated coverage on all five ADNOC-affiliated companies with "overweight" ratings on Friday, signaling strong confidence in this energy network.
"With geopolitical lines being redrawn, we see investing in the ADNOC eco-system as a strategic imperative for global portfolios," Barclays analysts noted, pointing to the company's $150 billion spending plan through 2027.
While many Western energy companies face mounting pressure to pivot away from fossil fuels, ADNOC is balancing traditional oil and gas with future-focused investments, Barclays analysts said.
The ambition here is unmistakable, analysts said, if not a bit against the grain of current industry caution. While many Western energy companies are scaling back investments, ADNOC is pursuing what Barclays analysts describe as "an ambitious plan to deploy assets and capital at world-scale."
However, the analysts said it is yet to seen whether the "balancing act between traditional energy dominance and future-focused investments represent a sustainable long-term strategy, or is ADNOC merely delaying an inevitable energy transition that's already underway."
Reuters last week reported that ADNOC Drilling ADNOCDRILL.AD posted a strong rise in first-quarter profit.
Additionally, The Financial Times reported on Friday that ADNOC is among several potential bidders for BP BP.L, alongside companies like Shell SHEL.L, Chevron CVX.N, Exxon Mobil XOM.N, and TotalEnergies TTEF.PA.
(Rashika Singh)
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