ADNOC Gas reports 21% rise in net income in Q1
ADNOC Gas, a subsidiary of the state-owned Abu Dhabi National Oil Company (ADNOC), on May 7 announced an adjusted net income of $1.18bn in the first quarter of 2024, up 21% year/year. The company's performance was driven by higher sales volume and increased revenue, fuelled by rising demand in the UAE.
During the first quarter of 2024, ADNOC Gas witnessed a 14% year/year increase in sales volume, contributing to a 15% year/year growth in revenue to $6.01bn. This growth was supported by strong demand in the UAE, where ADNOC Gas fulfills over 60% of the country's gas demand and serves as the largest supplier to the petrochemical sector.
ADNOC Gas recently unveiled plans to invest over $13bn in domestic and international growth opportunities between 2024 and 2028, aiming to boost its EBITDA by up to 40%. The company is well-positioned to benefit from ADNOC's planned expansion of oil production capacity to 5mn barrels/day by 2027, which will lead to an increase in associated gas production, it said.
In line with its growth strategy, ADNOC Gas is developing the Al Ruwais LNG project at Al Ruwais Industrial City, featuring two LNG liquefaction trains with a combined capacity of 9.6mn tonnes/year. This expansion will more than double ADNOC's LNG production capacity.
Furthermore, ADNOC Gas is pursuing international growth opportunities in Europe, India, China, and Southeast Asia to strengthen its position in the global LNG market and generate additional returns.
During Q1 2024, the company continued to progress with its strategic growth projects, investing $387mn in capital expenditures, in line with its guidance for the fiscal year.
ADNOC had in January 2023 announced the formation of ADNOC Gas. It was listed on the Adu Dabhi stock exchange in March. The new entity undertakes processing, operations and marketing of natural gas. It combines the operations, maintenance and marketing of the ADNOC Gas Processing and ADNOC LNG businesses into one consolidated business.