Adnoc Gas, an integrated gas processing company, has announced robust results for the third quarter registering a 13% quarter-on-quarter (Q-o-Q) growth in its net income which hit $1.1 billion despite market volatility.

 

The Abu Dhabi company maintained stable margins in line with its guidance and previous periods. It continued to deliver robust financial and operational performance in a volatile market environment marked by consumer and geo-political pressures. 

 

Its Q3 revenue grew to $5.807 billion, representing an 8% growth compared to Q2 2023, in line with the improving price environment and higher sales volumes. 

 

The company’s Q3 2023 ebitda improved to $1.863 billion, up 5% compared to Q2 2023, while Net Income for the quarter increased by 13% quarter-on-quarter (Q-o-Q) to $1.116 billion. 

 

These results underscore the business’ resilience and its ability to capitalize on optimization and growth opportunities. A nine-month Net Income of $3.375 billion reflects the lower pricing environment compared to the same period of 2022.

 

On the robust results, CEO Ahmed Alebri said: "Adnoc Gas has delivered robust financial results for the first nine months of the year despite a lower pricing environment compared to 2022. In the third quarter, we maintained stable EBITDA and Net Income margins, demonstrating our resilience and ability to generate attractive returns despite market headwinds."

 

"We have made significant progress, delivering on our growth strategy through substantial investments with $5.6 billion in contracts awarded in the first nine months of 2023. This includes the Engineering Procurement and Construction contract awarded for the construction of carbon capture units, which is a significant milestone in our decarbonization journey, helping us further decarbonize our operations in line with Adnoc’s bold Net-Zero by 2045 ambition," he stated.

 

"Expanding further into low carbon products, in the first nine month of the year, Adnoc Gas has concluded new LNG supply deals with a total value of $9-12 billion. We have expanded our international customer base through newly signed agreements with very reputable counterparties, mainly from Asia," he added.

 

So far in 2023, Adnoc Gas has awarded contracts totaling $5.6 billion. As part of its growth strategy, the Company recently awarded a $3.6 billion contract to commission new capacity and expand its gas processing facilities in the UAE, enabling optimized supply to the Ruwais Industrial Complex. 

 

In addition, the Company also awarded a $615 million contract for a carbon capture project. This follows the Q2 award of $1.34 billion in contracts for expanding its natural gas pipeline network as part of the ESTIDAMA program, aimed at enabling the supply of higher volumes of natural gas to customers in the Northern Emirates.

 

Impressed with the results, Alebri said: "I’m pleased to announce that our strong free cash-flow generation during the first nine months of the year fully covers our full-year dividend for 2023. In line with our previous shareholder guidance, we will distribute our inaugural interim cash dividend in December this year."

 

Adnoc Gas, he stated, continues to leverage opportunities arising from Adnoc’s integrated gas masterplan which links every part of the gas value chain in the UAE, ensuring a sustainable and economic supply of natural gas to meet local and international demand.

 

"Adnoc Gas continues to capitalize on the growing global demand for natural gas and has signed LNG supply deals valued between $9 billion and $12 billion this year. These agreements, signed with reputable counterparties like Japan Petroleum Exploration Company, Indian Oil Corporation, PetroChina International and JERA Global Markets, further strengthen Adnoc Gas’ position as a global, stable and reliable LNG supplier with the capacity and capability to meet both local and international demand," he added.