ADNOC Gas beats Q2 profit guidance, approves $940m dividend and lifts 2030 growth target

Dubai: ADNOC Gas reported second-quarter net income of $665 million, beating its guidance range despite operational and shipping disruptions, while approving a $940 million quarterly dividend and raising its earnings growth target through 2030.

The Abu Dhabi-listed company said Q2 net income came in above its previously guided range of $400 million to $600 million, supported by resilient margins in its domestic gas business during what it described as a challenging operating environment.

Its board approved a quarterly dividend of $940 million, payable in September, while reaffirming plans to increase annual dividends by 5% through 2030.

The company also expects third-quarter net income of between $600 million and $800 million, assuming disruption to maritime routes through the Strait of Hormuz continues.

Full-year net income is expected to reach between $3.5 billion and $4 billion if maritime operations are fully restored by the fourth quarter and pricing realisations normalise.

ADNOC Gas has raised its targeted EBITDA growth to 60% by 2030 compared with 2023 levels, up from its previous target of more than 40% growth between 2023 and 2029.

The new target assumes a Brent crude oil price of $70 per barrel and will be supported by approximately $28 billion of investment planned between 2026 and 2030.

ADNOC Gas has taken final investment decisions on Phases 2 and 3 of its Rich Gas Development project and awarded engineering, procurement and construction contracts worth a combined $8.2 billion.

Wison Engineering received a $3.9 billion contract for Phase 2, while Tecnimont was awarded a $4.3 billion contract for Phase 3.

Combined with the $5 billion committed to Phase 1, total investment in the Rich Gas Development project has reached $13.2 billion.

Phase 2 will add a new natural gas processing train at the Habshan facility, increasing processing capacity and supporting the UAE's downstream and petrochemical sectors.

Phase 3 will add a new natural gas liquids fractionation train at Ruwais, increasing the recovery of higher-value liquids from rich natural gas for export.

The wider growth programme also includes Ruwais LNG, Maximizing Ethane Recovery and Monetization, known as MERAM, and Estidama.

Together, the four megaprojects are expected to generate $13.4 billion in In-Country Value. MERAM is expected to be delivered in 2027, while Ruwais LNG and Estidama are progressing according to plan.

ADNOC Gas said recovery at its Habshan complex has moved ahead of schedule following security-related incidents on April 3 and April 8.

Gas supply has already been restored to 85%, exceeding the year-end target the company set in May.

Al Nuaimi said: "At the same time, ADNOC Gas delivered resilient second-quarter net income above our guided range, despite a challenging operating environment, reflecting the strength of our business, the discipline of our execution, and the continued delivery of our long-term strategy."

Maritime disruption through the Strait of Hormuz also affected product liftings during the second quarter, with ADNOC Gas using inventory, logistics and supply-chain measures to manage temporary constraints and maintain customer commitments where possible.

The company is also expanding the use of artificial intelligence and robotics across its operations, including drones, four-legged inspection robots and tank-climbing crawlers.

ADNOC Gas said the technologies have the potential to reduce inspection costs by up to 75% and complete some inspections up to 15 times faster, while limiting the need for personnel to enter hazardous environments.