The ADNOC affiliated entities on ADX are putting through strong numbers for Q1-24. ADNOC Gas' revenues swelled to $6 billion. Image Credit: Afra Al Nofeli/Gulf News

Dubai: New supply wins in the UAE and from overseas clients helped land a 15 per cent increase in revenues for ADNOC Gas, totaling $6 billion. On the bottom line, net income shot up 21 per cent to $1.18 billion.

This was boosted by a 20 per cent gain in the ADNOC entity's domestic gas net income unit margin. This, the company says, is a 'testament to ADNOC Gas’ position as a highly efficient domestic gas supplier, benefiting from favourable market demand'. (It meets more than 60 per cent of the UAE’s gas demand and is the largest supplier to the petrochemical sector in the country.)

“Fueled by robust sales volumes and ongoing margin improvement in our core domestic operations, we’re proud to have achieved a 21 per cent y-o-y increase in adjusted net income," said Dr. Ahmed Alebri, CEO. "We have made significant progress on our strategic growth projects, including signing additional LNG sales agreements that reinforce our position as a trusted and reliable global supplier."

In line for 5% dividend hike

“Our robust cash flow generation will enable us to grow the annual dividend by 5 per cent to $3.41 billion in 2024," the CEO added. "Shareholders stand to continue to benefit from an annual dividend yield of over 5 per cent in addition to the potential for share price appreciation.”

Its Q1-2024 earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $2.07 billion, a 17 per cent increase. The EBITDA margin improved to 35 per cent from 34 per cent a year earlier, 'underscoring the benefits of our 25-year gas supply and purchase agreement', said a statement.

The company had paid its H2-2023 dividend of $1.62 billion last month. 

Ruwais LNG update
The Ruwais LNG project continues to make headway, and on which ADNOC Gas is currently providing support and advice. ADNOC awarded an early EPC contract for Ruwais LNG during Q1-2024 and secured two long-term Heads of Agreements for LNG offtake from the facility. ADNOC intends to acquire the Ruwais LNG plant and more than double its LNG production capacity by 2028.

India supply win

ADNOC Gas signed a new 10-year LNG supply agreement that will see it supply 0.5 million metric tonnes of LNG per annum to GAIL India, India’s leading natural gas company. "The deal capitalizes on the growing global demand for LNG as a transitional fuel and underscores ADNOC Gas’ position as a global export partner of choice," said a statement.

The company's plans are to invest more than $13 billion in 'domestic and international growth opportunities' between 2024-28, with its 'predictable margin business expected to grow its EBITDA by up to 40 per cent.

In the UAE, ADNOC Gas will gain from the parent entity's planned expansion of oil production capacity to 5 million barrels per day by 2027, which will contribute to an increase in associated gas production.