Adnoc Gas reports revenue of Dh38.9 billion in H1 2023

Revenue in Q2 2023 stood at Dh19.8 billion compared to Pro Forma Adjusted Revenue of Dh26.1 billion last year

By WAM

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Top Stories

Wam
Wam

Published: Fri 4 Aug 2023, 9:23 PM

Adnoc Gas on Friday announced its financial results for the three months and six months ended on June 30.

The company's H1 2023 revenue stood at Dh38.9 billion ($10.6 billion) compared to Pro Forma Adjusted Revenue of Dh48.8 billion ($13.3 billion) in H1 2022, impacted by the pricing environment.


Revenue in Q2 2023 was reported at Dh19.8 billion ($5.4 billion) compared to Pro Forma Adjusted Revenue of Dh26.1 billion ($7.1 billion) in Q2 2022. Adnoc Gas maintained high reliability with a 98.9 per cent average across its facilities in H1 2023, contributing to a 15 per cent increase in production volumes in Q2 2023 over Q1 2023.

Adnoc Gas 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 Dh6.6 billion ($1.8 billion) and Net Income of Dh3.7 billion ($1.0 billion) in Q2 2023, demonstrating that Adnoc Gas is a predictable and resilient margin business underpinned by profitable growth.


Ahmed Alebri, Chief Executive Officer of Adnoc Gas, commented: "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 Dh8.4 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.

"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.

ALSO READ:

"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," he added.

In line with Adnoc Gas' growth strategy, the company recently awarded Dh4.2 billion ($1.34 billion) in contracts for extending its natural gas pipeline to over 3,500km, serving the Northern Emirates, marking another key milestone for the sales gas pipeline network enhancement (ESTIDAMA) programme. This strategic pipeline extension will drive further growth for Adnoc Gas as it continues to provide sustainable gas supplies to customers in support of the UAE's plan to achieve gas self-sufficiency.

Adnoc Gas 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 an Dh26-33 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. In February, Adnoc Gas made the first-ever delivery of LNG from the Middle East to Germany, paving the way for longer-term deliveries.

Adnoc Gas maintains its dividend target of Dh5.968 billion ($1.625 billion) in the fourth quarter of 2023 and a further Dh5.968 billion ($1.625 billion) dividend in the second quarter of 2024. Thereafter, Adnoc Gas expects to grow the annual target dividend amount by 5 per cent per annum on a per-share basis over the 2024-2027 period. The targeted growth in dividends underscores Adnoc Gas' strong and visible future cash flows, which provide ample headroom to invest in long-term future growth and provide stable returns for shareholders.


More news from Business