Continued focus on efficiency drives EBITDA growth to $2.09 billion, up 18% year-on-year 

Interim dividend of $1.706 billion approved, up 5% on 2023; $3.41 billion to be distributed for the full year  

Abu Dhabi, UAE: ADNOC Gas plc and its subsidiaries (together referred to as “ADNOC Gas” or the “Company”) (ADX symbol: ADNOCGAS / ISIN: AEE01195A234), a world-class integrated gas processing company, today announced strong financial results for the second quarter (Q2) of 2024, posting an adjusted Net Income of $1,190 million, a 21% year-on-year (y-o-y) improvement exceeding market expectations.

Revenues for the Q2 period of $6,076 million are an increase of 13% y-o-y. Within the UAE, increased population and industrial growth have contributed to stronger sales for the domestic gas business. ADNOC Gas fulfils more than 60% of the UAE’s gas demand and is fueling the development of key industrial sectors of the nation, including the growth of petrochemicals.

EBITDA growth outpaced revenue improvement during the quarter, reaching $2,086 million, 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 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, implementing efficiencies, and optimizing costs. We are well positioned to pursue our ambitious growth agenda, underpinned by the strength, expansion, and ambition of the UAE market.”

Highlights

  • ADNOC Gas has been a pioneer in Artificial Intelligence, Digitalization and Technology (AIDT) for the gas industry. The company installed one of the industry’s largest Real Time Optimizer (RTO), which is a solution that helps in analyzing 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 realized through deployment of AIDT in ADNOC Gas since 2016. A further $2 billion is expected over the next five years. 
  • ADNOC Gas announced in July that it will transfer ownership of the $2.4 billion gas pipeline extension project (ESTIDAMA) to ADNOC, significantly optimizing ADNOC Gas’ capital efficiency. ADNOC Gas will continue to manage and operate the ESTIDAMA project, allowing the Company to reach new customers in the Northern Emirates.
  • 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.

Dividend Update

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 Board of Directors has approved an interim dividend of $1,706 million, scheduled for distribution in September. The approved interim dividend equals to a dividend per share of 8.164 fils. A planned final dividend also of $1,706 million will be distributed in April 2025, pending approval at the Annual General Meeting (AGM).

Key Financial Metrics for Q2 2024

$ Million

Q2 23

Q1 24

Q2 24

YoY %

QoQ %

  

 

 

Q2 24 vs. Q2 23

Q2 24 vs. Q1 24

Revenue

5,397

6,011

6,076

13%

1%

COGS

-3,078

-3,410

-3,480

13%

2%

Opex

-553

-525

-510

-8%

-3%

EBITDA

1,766

2,076

2,086

18%

1%

Net Income2

984

1,187

1,190

21%

0%

EBITDA Margin

33%

35%

34%

2%

0%

Net Income Margin

18%

20%

20%

1%

0%

About ADNOC Gas

ADNOC Gas, listed on the ADX (ADX symbol: “ADNOCGAS” / ISIN: “AEE01195A234”), 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. To find out more, visit: www.adnoc.ae (X) @ADNOCGas, (Instagram) @adnocgas

For investor inquiries, please contact:
Zoltan Pandi, Vice President, Investor Relations
+971 (2) 6017087
ir@adnocgas.ae 

For media inquiries, please contact: 
Colin Joyce, Vice President, Corporate Communications
+971 (2) 6037444
media.adg@adnoc.ae