Adnoc Gas reports quarterly net income of $1.1 billion

Adnoc Gas announced its financial results for the three months and nine months ended September 30, 2023 on Tuesday.

Adnoc Gas continued, a press statement from the firm said, to deliver robust financial and operational performance in a volatile market environment marked by consumer and geo-political pressures. The company’s Q3 2023 revenue grew to $5.807 billion, representing an 8 per cent growth compared to Q2 2023, in line with the improving price environment and higher sales volumes.

Despite market volatility, the company said it was able to maintain stable margins in line with its guidance and previous periods.

The firm’s Q3 2023 EBITDA improved to $1.863 billion, up 5 per cent compared to Q2 2023, while Net Income for the quarter increased by 13 per cent quarter-on-quarter (Q-o-Q) to $1.116 billion.

The integrated gas processing company posted a nine-month net Income of $3.375 billion.

Ahmed Alebri, Chief Executive Officer of Adnoc Gas, commented: “Adnoc Gas has delivered robust financial results for the first nine months of the year despite a lower pricing environment compared to 2022.

“Expanding further into low carbon products, in the first nine month of the year, Adnoc Gas has concluded new LNG supply deals with a total value of $9-12 billion. We have expanded our international customer base through newly signed agreements with very reputable counterparties, mainly from Asia.

“I’m pleased to announce that our strong free cash-flow generation during the first nine months of the year fully covers our full-year dividend for 2023. In line with our previous shareholder guidance, we will distribute our inaugural interim cash dividend in December this year.”

$5.6 billion in contracts awarded in 2023

Adnoc Gas has awarded contracts totaling $5.6 billion this year, the release added. As part of its growth strategy, the firm recently awarded a $3.6 billion contract to commission new capacity and expand its gas processing facilities in the UAE, enabling optimized supply to the Ruwais Industrial Complex.

In addition, the company also awarded a $615 million contract for a carbon capture project. This follows the Q2 award of $1.34 billion in contracts for expanding its natural gas pipeline network as part of the ESTIDAMA program, aimed at enabling the supply of higher volumes of natural gas to customers in the Northern Emirates.

New LNG supply deals concluded

Adnoc Gas signed LNG supply deals valued between $9 billion and $12 billion this year. These agreements were signed with reputable counterparties like Japan Petroleum Exploration Company Limited, Indian Oil Corporation Limited, PetroChina International Co., Ltd and JERA Global Markets.

Emissions targets

The press release added Adnoc Gas is fully aligned in delivering the Group’s 25 per cent emissions intensity reduction target by 2030, the UAE’s Net-Zero by 2050 ambition and Adnoc’s own Net-Zero by 2045 target.

Interim dividend approved, dividend guidance maintained

Adnoc Gas also announced that its Board of Directors approved an inaugural interim cash dividend (interim dividend) of $1.625 billion (Dh5.968 billion).

The dividend will be distributed on December 14, equivalent to 7.776 fils per share. The interim dividend will be paid to shareholders who own Adnoc Gas shares on the record date of November 24.

The media statement added that the company aims to increase the annual dividend payment from $3.25 billion by 5 per cent per annum on a per-share basis from 2024 to 2027.