ADNOC Gas sees 21% year-on-year rise in profits

ADNOC Gas has reported an increase in profits and revenues. (Image source: ADNOC gas)

ADNOC Gas plc and its subsidiaries have recorded an adjusted net income of US$1,190mn for Q2 2024, a 21% year-on-year (y-o-y) improvement

Revenues for the Q2 period of US$6,076mn represent an increase of 13% y-o-y. Within the UAE, increased population and industrial growth have contributed to stronger sales for the domestic gas business. ADNOC Gas fulfils more than 60% of the UAE’s gas demand and is fueling the development of key industrial sectors of the nation, including the growth of petrochemicals.
Highlights of the quarter include the announcement in July that ADNOC Gas will transfer ownership of the US$2.4bn gas pipeline extension project (ESTIDAMA) to ADNOC, significantly optimising ADNOC Gas’ capital efficiency. ADNOC Gas will continue to manage and operate the project.
In June, ADNOC announced a Final Investment Decision (FID) on the Ruwais LNG project, following which Mitsui & Co, Shell, bp, and TotalEnergies were announced as equity partners. ADNOC also awarded an EPC contract valued at over US$5.5bn. ADNOC Gas is managing the design and construction and is looking to become an equity partner, and operator, of Ruwais LNG by acquiring ADNOC’s stake.
Focus on AI, digitalisation and technology
The focus on AI, digitalisation and technology has paid off for the company, with US$1bn in value realised since 2016 as a result, and a further US$2bn expected over the next five years.
Dr. Ahmed Alebri, chief executive officer of ADNOC Gas, said, “Our robust Q2 results clearly reflect our focus on growth, significantly strengthening revenues and profitability while continuing to maintain a healthy margin. The 21% improvement in Q2 net profit underlines our commitment to enhancing our performance, implementing efficiencies, and optimising costs. We are well positioned to pursue our ambitious growth agenda, underpinned by the strength, expansion, and ambition of the UAE market.”
The announcement follows healthy revenues and profits recorded at other ADNOC divisions, such as ADNOC Drilling.