ADNOC Gas posts 2025 profit at $5.2 billion as UAE demand powers growth
CFO Peter Van Driel said a dividend of $3.6 billion has been endorsed by the Board
Abu Dhabi: Power stations, factories and utilities across the UAE powered ADNOC Gas to achieve a 3 per cent surge in net income to $5.2 billion in 2025. Buoyed by the earnings, the company board has endorsed a $3.6 billion dividend for shareholders.
Chief Financial Officer Peter Van Driel told media on Monday, “You notice that the net income for the year is $5.2 billion that is 3 per cent higher than the year before, and that all occurred in an environment in which the oil price was 14 per cent lower.”
This, according to a company statement, "demonstrates structurally resilient earnings and an ability to perform consistently through commodity cycles."
Van Driel said they were able to deliver full-year results despite an average Brent crude oil price of $69, a drop of 14 per cent year-on-year.
The Company’s robust 2025 net income was primarily driven by the strength of its domestic gas business where its EBITDA was up 10 per cent on sales volume growth of 4 per cent year-on-year (YoY) and improved commercial terms. However, full-year revenues dropped 4 per cent to $23.4 billion from $24.4 billion in 2024.
Fatema Al Nuaimi, CEO of ADNOC Gas said the company is, "strategically positioned to serve both the UAE and international markets with confidence and discipline.”
Local market is backbone
The numbers show how critical the domestic market has become to ADNOC Gas’ earnings stability.
Van Driel said: “It means that the company is extremely resilient for lower oil prices, and that is driven to a large extent by the strength of the domestic market.”
He broke the profit pool down further: “One is the domestic market with $2.8 billion of net income. There you got your export market with $2 billion, and then you got other products in the portfolio that make up the difference.”
Why demand is rising
To make sure supply keeps pace with rising demand from homes, power plants and industry, ADNOC Gas is expanding its processing network through its Rich Gas Development (RGD) programme.
The project will be rolled out in three stages. Phase one, already under way, focuses on removing bottlenecks in existing facilities so more gas can be handled from ADNOC’s growing upstream production.
Two further stages — involving the construction of new processing and fractionation trains — are awaiting final investment decisions.
Van Driel said, “Our first step was to de bottleneck our existing infrastructure.”
When all three phases are in place, the scale of the increase becomes significant. Asked what the uplift would look like, the figure discussed was: “So from 10 BCF to 13.”
Dividends to shareholders
Van Driel described the dividend outlook between 2025 and 2030 as “a staggering to $24.4 billion.” He added, “I just want to point out that the dividend growth is still 5 per cent every year. So, the dividend continues to rise by 5 per cent.”
Despite higher investment, ADNOC Gas says it is not under pressure to borrow.
Van Driel said, “Today, we have zero financing on the balance sheet other than working capital facilities.”
Even after distributions, “the free cash flow… still gave us half a billion excess.”
Mergers and acquisitions
ADNOC Gas signalled it is in no rush to pursue acquisitions, stating that its current pipeline of expansion projects already offers stronger and safer returns than buying assets abroad.
Van Driel said, “I believe the company with the organic growth strategy has actually got something that is more attractive than inorganic growth or M&A.”
He explained why management is cautious about dealmaking, adding: “Today, our large projects give us mid-term returns, and the risk profile is one that we're very familiar with.”
Moving into overseas acquisitions, he warned, could dilute both advantages. “First of all, it is very difficult to find projects that have a better return than what we have today in our portfolio. And secondly, it’s likely your risk profile will also be less attractive, so the company is focusing on organic growth.”
Last month, ADNOC Gas plc and its subsidiaries signed a sales and purchase agreement valued at $2.5-$3 billion for a period of 10 years with Hindustan Petroleum Corporation Limited (HPCL).
The agreement was announced during a visit to India by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, where he met with the Indian Prime Minister, Narendra Modi.
