ADNOC Gas Q2 net income rises 21% to $1.19bn

ADNOC Gas has released its Q2 earnings, reporting a net income of $1.19bn, marking a 21 per cent increase year-on-year (YoY).

The company’s revenues for the quarter reached $6.8bn, up 13 per cent YoY, marking the third consecutive quarter with revenues exceeding $6bn.

This growth has been fuelled by stronger sales in the domestic gas business, driven by increased population and industrial activity within the UAE.

ADNOC Gas supplies over 60 per cent of the UAE’s gas demand, playing a crucial role in the expansion of key industrial sectors, including petrochemicals.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter grew by 18 per cent YoY to $2.09bn, outpacing revenue growth and achieving an EBITDA margin of 34 per cent.

This margin reflects high sales demand and the strategic advantages of the company’s long-term gas supply agreements.

ADNOC Gas’s integral role in powering the UAE’s industrial diversification and growth has been a significant contributor to these results.

“Our robust Q2 results reflect our focus on growth, significantly strengthening revenues and profitability while continuing to maintain a healthy margin,” said Dr Ahmed Alebri, CEO of ADNOC Gas.

He added, “The 21 per cent improvement in Q2 net profit underlines our commitment to enhancing our performance, implementing efficiencies, and optimising costs. We are well positioned to pursue our ambitious growth agenda, underpinned by the strength, expansion, and ambition of the UAE market.”

ADNOC Gas also announced a 5 per cent increase in its annual dividend per share, in line with its dividend policy, for a total distribution of $3.41bn for the full year 2024.

The board of directors approved an interim dividend of $1.71bn, which will be distributed in September.

The interim dividend equates to 8.164 fils per share. A final dividend of $1.71bn is planned for distribution in April 2025, pending approval at the annual general meeting.

Strategic initiatives: ADNOC Gas’ key highlights

ADNOC Gas has implemented one of the largest real-time optimisers (RTO) in the sector, a system that analyses operational parameters and recommends ways to reduce energy consumption and emissions.

Since its initial pilot in 2018, this solution has been deployed across 27 production trains, resulting in a $1bn value creation since 2016. ADNOC Gas anticipates an additional $2bn in value over the next five years through AIDT initiatives.

In July, ADNOC Gas announced the transfer of ownership of the $2.4bn ESTIDAMA gas pipeline extension project to ADNOC, a move that significantly enhances the company’s capital efficiency.

Despite the ownership transfer, ADNOC Gas will continue to manage and operate the project, expanding its reach to new customers in the Northern Emirates.

In June, ADNOC made a final investment decision (FID) on the Ruwais Liquified Natural Gas (LNG) project. The company has since welcomed Mitsui & Co, Shell, bp, and TotalEnergies as equity partners, each securing a 10 per cent stake.

ADNOC awarded a $5.5bn engineering, procurement and construction (EPC) contract for the project, with ADNOC Gas overseeing its design and construction.

The company has also reaffirmed its intention to become an equity partner and operator of Ruwais LNG by acquiring ADNOC’s stake.

Read: Abu Dhabi’s ADNOC, Osaka Gas sign initial agreement for LNG delivery

 Also read: ADNOC Gas awards $550m contracts to expand UAE gas infrastructure