Driven by stronger domestic gas growth, the UAE’s ADNOC Gas posted an adjusted net income of $1,190 mill for the second quarter of this year, a 21% year-on-year (y-o-y) improvement, which exceeded market expectations.
Revenues for 2Q24 saw an increase of 13% y-o-y, totalling $6,076 mill.
Within the UAE, increased population and industrial growth contributed to stronger sales for the domestic gas business. ADNOC Gas fulfils more than 60% of the UAE’s gas demand and is fuelling the development of key industrial sectors, including petrochemicals’ growth.
EBITDA outpaced revenue improvement during the quarter, reaching $2,086 mill, an 18% y-o-y 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 (SPA) and ADNOC Gas’ integral role in powering and enabling the UAE’s industrial diversification and growth.
Dr Ahmed Alebri, ADNOC Gas CEO, 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 2Q24 net profit underlines our commitment to enhancing our performance, implementing efficiencies, 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 also claimed to be 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 helps to analyse operation parameters and recommends how to reduce energy consumption and emissions.
This solution, first piloted in 2018, has been rolled out across 27 production trains. Overall, $1 bill in value has been realised through AIDT’s deployment since 2016, ADNOC Gas claimed.
A further $2 bill is expected over the next five years.
Furthermore, in June, ADNOC announced a final investment decision (FID) on the Ruwais 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 for the project valued at over $5.5 bill.
ADNOC Gas is managing Ruwais LNG’s design and construction and has confirmed its intention to become an equity partner, and operator by acquiring ADNOC’s stake.
ADNOC Gas also announced an increase in its annual dividend per share by 5%, aligning with its dividend policy to distribute a total of $3,412 mill for the full year 2024.
The Board approved an interim dividend of $1,706 mill, scheduled for distribution in September. This equals a dividend per share of Fils8.164.
A planned final dividend of the same amount will be distributed in April, 2025, pending its approval at the Annual General Meeting (AGM).
