Adnoc Gas Posts 15 Percent Rise in Revenue

Adnoc Gas, a subsidiary of Abu Dhabi National Oil Co. (Adnoc), reported a 15 percent year-on-year (YoY) rise in revenue to $6 billion for the first quarter of 2024 due to a surge in demand in the United Arab Emirates.

Domestic sales volumes increased by 14 percent YoY, Adnoc Gas said in a press release.

Thanks to the enhanced revenue and a sustained focus on operational efficiency, EBITDA for Q1 2024 rose to $2.08 billion, marking a 17 percent YoY increase, the company said.

Adjusted net income for the company saw a 21 percent YoY improvement to $1.19 billion, with a 20 percent YoY increase in domestic gas net income unit margin. Adnoc Gas meets over 60 percent of the UAE's gas requirements and stands as the primary supplier to the nation's petrochemical sector, according to the company.

“Fueled by robust sales volumes and ongoing margin improvement in our core domestic operations, we’re proud to have achieved a 21 percent Y-o-Y increase in adjusted net income. While delivering improvement across all key metrics, we have made significant progress on our strategic growth projects, including signing additional LNG sales agreements that reinforce our position as a trusted and reliable global supplier”, Ahmed Alebri, Chief Executive Officer of Adnoc Gas, said.

The company said it plans to invest over $13 billion in domestic and international growth opportunities from 2024 to 2028, expecting to grow its EBITDA by up to 40 percent. Adnoc Gas is well-positioned to benefit from Adnoc planned expansion of oil production capacity to five million barrels per day by 2027, contributing to a rise in associated gas production.

Furthermore, Adnoc Gas said in its media release it aims to grow internationally and secure new positions in the gas value chain in Europe, India, China, and Southeast Asia to strengthen the UAE's presence in global LNG markets and generate additional returns to enhance its current business.

During the first quarter of 2024, Adnoc said it made significant progress with Ruwais LNG, a strategic project for ADNOC and the UAE. Adnoc awarded an early engineering, procurement, and construction contract for Ruwais LNG during Q1.

Adnoc secured two long-term heads of agreements for LNG offtake from the facility. Adnoc recently announced its intention to make a final investment decision on the Ruwais LNG project, aiming to acquire the Ruwais LNG plant and more than double its LNG production capacity by 2028, Adnoc Gas said.

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