ADNOC Gas sees Q3 profit rise 11% to $1.2B on strong revenue

ADNOC Gas Reports 11% Increase in Third-Quarter Profit to $1.2 Billion Thanks to Strong Revenue Growth

BY THE ARAB TODAY Nov 11, 2024

ADNOC Gas Reports 11% Increase in Third-Quarter Profit to $1.2 Billion Thanks to Strong Revenue Growth

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ADNOC Gas Reports 11% Increase in Third-Quarter Profit to $1.2 Billion Thanks to Strong Revenue Growth

ADNOC Gas, a company under the state-owned Abu Dhabi National Oil Company (ADNOC), reported an 11% increase in net profit for the third quarter compared to last year, reaching $1.24 billion. This rise was driven by higher revenues, according to a filing on Monday.

ADNOC Gas Earnings

In the third quarter of 2024, ADNOC Gas’s revenue increased by 8% to $6.3 billion, up from $5.8 billion in the same period last year, thanks to higher product prices even though domestic sales dropped.
However, the company’s free cash flow fell 9% to $1.2 billion (from $1.3 billion), mainly due to a 45% increase in capital spending, which rose to $503 million (AED 1.8 billion).
For the first nine months of 2024, net profit rose 18% to $3.6 billion, excluding a one-time gain of $298 million from a tax adjustment.
The company has updated its capital spending plans for 2024 to a range of $1.9 billion to $2.2 billion, down from the previous estimate of $2 billion to $2.3 billion.
ADNOC Gas is ranked 12th on Forbes Middle East’s list of top 100 listed companies.

Key Quote

“Our third-quarter results show how strong our performance is, and our new strategy is designed to prepare for the future, with a goal to grow EBITDA by over 40% by 2029,” said ADNOC Gas CEO Ahmed Alebri.

“We’re dedicated to giving great value to our shareholders, with plans for significant growth and an expected 5% increase in our annual dividends.”

LNG Plant Acquisition

ADNOC Gas plans to buy ADNOC’s 60% ownership of the Ruwais Liquified Natural Gas (LNG) plant for about $5 billion in late 2028.

This acquisition will boost ADNOC Gas’s current LNG production from 6 million metric tons per year on Das Island to over 15 million metric tons per year.

In October, ADNOC Gas decided not to expand its Das Island LNG facility and will instead invest in other important projects. This will help achieve a 30% increase in production capacity over the next five years and an 8.3% rise in LNG capacity by 2028.