Dubai: ADNOC Gas on Friday announced its H1-2023 revenue at $10.6 billion, down 20 per cent compared to Pro Forma Adjusted revenue of $13.3 billion in H1-2022, reflecting the impact of the pricing environment.
The company’s net-income stood at $2.2 billion, down 12 per cent compared to Pro Forma Adjusted net income of $2.5 billion in H1-2022.
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Despite the challenges, ADNOC Gas maintained high reliability across its facilities with an average of 98.9 per cent in H1-2023
Adapting to lower LPG and Brent crude oil prices, ADNOC Gas strategically shifted towards higher-margin export liquids and increased efficiency. As a result, the Company maintained a flat EBITDA of $1.8 billion and net income of $1.0 billion in Q2 2023, showcasing its predictability and resilience as a margin business with profitable growth.
Furthermore, ADNOC Gas aims to grow the annual target dividend amount by 5 per cent per annum on a per-share basis over the period from 2024 to 2027.
"Our results for the first half of 2023 showcase the resilience and robustness of our business in the current lower price environment compared to the higher prices witnessed in H1 2022," said Ahmed Alebri, CEO of ADNOC Gas. "For the period ending June 30, 2023, we delivered a net income of $2.3 billion."
"This performance demonstrates the strength of our business, which was also supported by selling more high-margin export liquids – a strategy that has proven effective."
Investing in growth
In line with its growth strategy, ADNOC Gas awarded $1.34 billion in contracts to extend its natural gas pipeline to over 3,500km, serving the Northern Emirates.
The company also signed a 14-year supply agreement worth $7-9 billion with Indian Oil Corporation Ltd. (IOCL) for the export of up to 1.2 mmtpa of LNG. This agreement, along with the previous one signed with TotalEnergies Gas and Power, expands ADNOC Gas' presence in various markets around the world. The Company's successful delivery of LNG to Germany earlier this year also sets the stage for future long-term deliveries.
