(Bloomberg) -- Adnoc Distribution is looking to hire a chief investment officer as the retail arm of the biggest oil company in the United Arab Emirates seeks to expand globally.
Parent company Abu Dhabi National Oil Co. has been on a recent push for deals across the energy and chemicals sectors. Owning retail service-station chains abroad can help give state oil companies a boost in entering more markets to supply fuels.
Adnoc Distribution is seeking someone to lead that push for the listed unit, according to an emailed response to questions from Bloomberg News. The company confirmed that the previous head of investments had left the company and that Chief Financial Officer Wayne Beifus is covering the role on an interim basis.
“Adnoc Distribution actively continues its pursuit of value-accretive international expansion,” it said. The company is looking for transactions in areas “including new attractive markets across the region, Africa, and Asia.”
Adnoc Distribution’s investment team will continue to operate as normal during the recruitment process, it said.
The previous CIO, Tanveer Rahman, left the post in February after less than two years in the role, according to his LinkedIn profile.
The company, formally named Abu Dhabi National Oil Company for Distribution PJSC, last week posted higher quarterly earnings helped by greater volumes of fuel sold and higher pump prices. Adnoc Distribution operates 847 service stations in the UAE, Egypt and Saudi Arabia. Its shares have declined 7.6% so far this year to 3.42 dirhams a piece, giving it a market value of 43 billion dirhams ($11.6 billion).
Global Push
Adnoc itself has been using part of a $150 billion budget to search for deals in chemicals and natural gas. It’s pursuing a $12.5 billion takeover of German chemical maker Covestro AG and has agreed to liquefied natural gas supply from and potential equity stakes in US export terminals.
The retail arm has also looked at several deals, though it hasn’t disclosed many transactions. In 2022, it purchased part of TotalEnergies SE’s fuel-distribution business in Egypt.
Buying a retailer provides demand for fuels that the company can supply. Adnoc in the UAE and Aramco from Saudi Arabia have been expanding their trading arms as they look to break into new markets.
Both companies were mulling bids for Shell Plc’s retail assets in South Africa, Bloomberg reported in May. Adnoc Distribution considered an offer for US propane business UGI Corp. before that approach fell through.
Aramco this year completed its acquisition of the Esmax chain in Chile, providing potential for fuel supply from its wholly owned Aramco Trading subsidiary. Both Aramco and Adnoc, along with Dubai-based Emirates National Oil Co., have supplied transport fuels to Kenya.
©2024 Bloomberg L.P.
