ADNOC Gas has announced a 15% rise in revenues to $6.011B, with adjusted net income up by 21% to $1.19B for the quarter ending March 31st.
The reported net profit exceeded LSEG’s projected estimate of $1.11B.
Total sales volumes increased by 14%, and EBITDA rose by 17% to $2.07B.
ADNOC Gas supplies over 60% of the UAE’s gas demand and is the primary supplier to the country’s petrochemical sector. Domestic revenue increased by 10%, with operational efficiencies boosting domestic net income by 20% year-on-year.
Dr Ahmed Alebri, CEO of ADNOC Gas, stated: “Benefitting from strong sales volumes and ongoing margin enhancement in our core domestic operations, we’re pleased to report a 21% rise in adjusted net income.
“While achieving improvements across all key metrics, we’ve also made significant strides in our strategic growth initiatives, including securing additional LNG sales agreements, reinforcing our status as a reliable global supplier.”
“Our robust cash flow will allow us to increase the annual dividend by 5% to $3.41B in 2024, in line with our dividend policy.”
The company aims to invest over $13B in domestic and international expansion opportunities from 2024 to 2028, with expected EBITDA growth of up to 40% in its predictable margin business.
ADNOC Gas stands to benefit from ADNOC’s plans to increase oil production capacity to five million barrels per day by 2027, which will lead to a rise in associated gas production.
The company is pursuing international growth and aims to acquire new positions in the gas value chain in Europe, India, China, and Southeast Asia, bolstering the UAE’s presence in global LNG markets and generating additional returns.
In Q1 2024, ADNOC Gas progressed with strategic growth projects like the Ruwais LNG project, with CapEx reaching $387M, a 123% increase year-on-year.
