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ADNOC Gas, a world-class integrated gas processing company, has announced strong financial results for the second quarter (Q2) of 2024.
Driven by robust domestic demand, fuelled by the UAE’s population growth and industrial expansion, revenues for the Q2 period of $6,076 million is an increase of 13% y-o-y (year on year). ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company (ADNOC) that supplies over 60% of the domestic gas market, saw its 2023 revenues reach $8.16 billion.
ADNOC Gas reported a 9% increase in revenues to exceed $9 billion for the first half of 2024. The net income for H1-2024 was $2.37 billion, up from $2.25 billion a year ago and exceeding expectations, according to Gulf News.
ADNOC Gas Sees Massive Revenue Growth
EBITDA growth outpaced revenue improvement during the quarter, reaching $2,086 million, an 18% y-o-y (year on year) increase. The company’s EBITDA margin of 34% is underpinned by high sales demand and the benefits of its long-duration gas supply and purchase agreement and ADNOC Gas’ integral role in powering and enabling the UAE’s Industrial diversification and growth.
Dr Ahmed Alebri, Chief Executive Officer of ADNOC Gas, said: “Our robust Q2 results clearly reflect our focus on growth, significantly strengthening revenues and profitability while continuing to maintain a healthy margin. The 21% improvement in Q2 Net Profit underlines our commitment to enhancing our performance and implementing and optimising costs. We are well positioned to pursue our ambitious growth agenda, underpinned by the strength, expansion, and ambition of the UAE market.”
ADNOC Gas Leads the Way in AI and Digital Transformation for the Gas Industry
ADNOC Gas has been a pioneer in Artificial Intelligence, Digitalisation and Technology (AIDT) for the gas industry. The company installed one of the industry’s largest Real Time Optimiser (RTO), which is a solution that helps in analysing operation parameters and recommends how to reduce energy consumption and emissions. The solution first piloted in 2018 was rolled out across 27 production trains. Overall, $1 billion in value has been realised through the deployment of AIDT in ADNOC Gas since 2016. A further $2 billion is expected over the next five years.
ADNOC Gas Optimises Capital Efficiency with ESTIDAMA Project Transfer
ADNOC Gas announced in July that it will transfer ownership of the $2.4 billion gas pipeline extension project (ESTIDAMA) to ADNOC, significantly optimising ADNOC Gas’ capital efficiency. The company will continue to manage and operate the ESTIDAMA project, allowing it to reach new customers in the Northern Emirates.
Strategic LNG Partnerships
In June, ADNOC announced a Final Investment Decision (FID) on the Ruwais Liquified Natural Gas (LNG) project and in July, it welcomed Mitsui & Co, Shell, bp, and TotalEnergies as equity partners, each taking a 10% stake. ADNOC also awarded an Engineering, Procurement, and Construction (EPC) contract valued at over $5.5 billion. ADNOC Gas is managing the design and construction and has reaffirmed its intention to become an equity partner, and operator of Ruwais LNG by acquiring ADNOC’s stake.
Interim Dividend Of $1.706 Billion Approved
ADNOC Gas has announced an increase in its annual dividend per share by 5%, aligning with its dividend policy to distribute a total of $3,412 million for the full year (FY) 2024. The company has declared an interim dividend of $1.706 billion, equivalent to 8.164 fils per share, payable in September. The company has also proposed a final dividend of the same amount of $1.706 billion to be distributed in April 2025.
About ADNOC Gas
ADNOC Gas is a world-class, large-scale integrated gas processing company operating across the gas value chain, from receipt of feedstock from ADNOC through large, long-life operations for gas processing and fractionation to the sale of products to domestic and international customers. ADNOC Gas supplies approximately 60% of the UAE’s sales gas needs and supplies end-customers in over 20 countries.
