Adnoc Gas, a unit of Abu Dhabi National Oil Company (Adnoc) has registered a revenue of AED38.9 billion ($11 billion) for the first half compared to pro forma adjusted revenue of AED48.8 billion ($13.3 billion) for the same period last year, impacted by the pricing environment.

 

Announcing its financial results for the six-month period ended June 30, 2023, Adnoc Gas said it had

adapted to lower LPG and brent crude oil prices in H1 2023 compared to the high pricing environment of H1 2022. The company strategically shifted towards higher-margin export liquids and focused on increased efficiency.  

 

These measures enabled the company to maintain a flat ebitda of AED6.6 billion and net income of AED3.7 billion in three-month perido ended June 30, 2023, demonstrating that Adnoc Gas is a predictable and resilient margin business underpinned by profitable growth.

 

For the second quarter, its revenue stood at AED19.8 billion compared to pro forma adjusted revenue of AED26.1 billion last year. 

 

Adnoc Gas said it had maintained high reliability with a 98.9 percent average across its facilities in H1 2023, contributing to a 15% increase in production volumes in Q2 2023 over Q1 2023.

 

On the performance, CEO Ahmed Alebri said: "Our results for the first half of 2023 showcase the resilience and robustness of our business in the current lower price environment compared to the higher prices witnessed in H1 2022. For the period ending June 30 2023, we delivered a net income of AED8.4 billion ($2.3 billion).""

 

"This performance demonstrates the strength of our business, which was also supported by selling more high-margin export liquids – a strategy that has proven effective," he stated.

 

"We continue to witness long-term structural demand growth for natural gas as a critical fuel for the responsible global energy transition. Adnoc Gas remains fully committed to investing in our people, operations, and markets, and we have continued to invest in our strategic growth opportunities throughout the first half of 2023," he added.

 

Adnoc Gas said it continues to capitalise on the growing global demand for natural gas while extending its reach and reputation as a reliable supplier. 

 

In a significant post-period event, on July 18, Adnoc Gas announced a AED26-33 billion ($7-9 billion) 14-year supply agreement with Indian Oil Corporation Ltd. (IOCL) for the export of up to 1.2 mmtpa of LNG. 

 

This comes on the heels of the company’s Q2 2023 signing of a supply agreement with TotalEnergies Gas and Power for the export of LNG to various markets around the world, said the Abu Dhabi company in its statement. 

 

In February, Adnoc Gas made the first-ever delivery of LNG from the Middle East to Germany, paving the way for longer-term deliveries, it added.

 

"Our recent signing of significant long-term LNG agreements and our domestic investments demonstrate that we remain ideally positioned to meet both local and international demand, while further decarbonising our operations in line with the UAE’s Net-Zero 2050 ambition, as we continue to deliver value for our shareholders over the longer-term," remarked Alebri.

 

In line with Adnoc Gas’ growth strategy, the company recently awarded AED4.2 billion in contracts for extending its natural gas pipeline to over 3,500 km, serving the Northern Emirates, marking another key milestone for the sales gas pipeline network enhancement programme, he added.-TradeArabia News Service