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ADNOC Gas Plc., a subsidiary of Abu Dhabi's state oil company ADNOC, reported a net profit of $1.3 billion for Q1 2023, up 9% year-on-year (yoy), in its first financial results since its IPO.
The earnings for the period included a $300 million benefit from recognizing a deferred tax asset, a non-reoccurring item, following the formation of the company, ADNOC Gas said on Thursday in a bourse filing on the Abu Dhabi Securities Exchange (ADX).
Revenue for the period stood at $5.2 billion, compared to pro forma adjusted revenue of $6.2 billion for Q1 2022, impacted by the pricing environment.
During the reporting period, Brent crude oil prices, which are used for gas pricing, declined nearly 24% in comparison to Q1 2022. This was however offset by the lower cost of raw gas supply as per ADNOC Gas’ long-term gas supply agreement with ADNOC, it added.
ADNOC Gas is targeting to pay a dividend of $1.625 billion in the fourth quarter of 2023 in respect of the first half of 2023.
Free cash flow stood at $1.1 billion versus $1.4 billion in Q1 2022.
ADNOC Gas listed on the Abu Dhabi bourse in March after ADNOC, its majority shareholder, raised $2.5 billion from a 5% stake sale through an IPO.
(Writing by Brinda Darasha; editing by Seban Scaria)
