#Abu Dhabi #UAE #ADNOC Gas #LNG Supply #UAE Gas

ADNOC Gas Q1 Financial Performance

ADNOC Gas has made a remarkable announcement regarding its financial performance for the first quarter of 2025. The company has reported a net income of $1.27 billion, which indicates a 7% increase compared to the same period in the previous year. This impressive result has significantly exceeded the market's expectations. Moreover, the earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q1 stands at $2.16 billion, reflecting a 4% rise year-over-year.

The encouraging performance of ADNOC Gas can be attributed to two main factors. Firstly, there has been a sustained demand for domestic gas, which has seen an upswing driven by robust economic growth within the UAE. This surge in demand has translated into an increased total sales volume for the company. Secondly, ADNOC Gas has effectively managed its planned maintenance program, resulting in a reduction in downtime for its processing plants. Therefore, the enhancements in processed volumes have also contributed positively to their performance.

Fatema Al Nuaimi, the Chief Executive Officer of ADNOC Gas, expressed pride in the company’s achievements during this quarter. She highlighted how ADNOC Gas has once again displayed a resilient business model, especially amidst fluctuating crude oil prices. Al Nuaimi stated, “This has been another outstanding quarterly performance by ADNOC Gas, supported by our resilient business model in a lower oil price market, which significantly exceeded market expectations.” The company is poised to leverage its financial strength in the coming months and aims to see an over 40% growth in EBITDA between 2023 and 2029.

In an effort to bolster its operational capacity, ADNOC Gas has engaged in a series of mid to long-term liquefied natural gas (LNG) supply agreements. These agreements, valued at approximately $9 billion, were signed with notable entities such as the Indian Oil Corporation and JERA Global Markets of Japan. This move solidifies ADNOC Gas's standing as a preeminent supplier of lower-carbon fuel while also enhancing the company’s footprint in international markets.

Additionally, during Q1, ADNOC Gas reported a substantial year-on-year increase in capital expenditure (CAPEX), climbing 43% as the company seeks to invest strategically to meet its long-term business objectives. They are on track to proceed with their Rich Gas Development project, with a Final Investment Decision expected within the year.

ADNOC Gas’s recent marketing efforts resulted in an offering of 3.1 billion shares, which has led to an increase in the free float by 4%, bringing it to 9%. This development positions the company for a potential inclusion in industry indices such as the MSCI and FTSE within the forthcoming months.

The financial summary for the first quarter is as follows:

• - Revenue: $6.099 billion (up 1% YoY)
• - COGS: $3.455 billion (up 1% YoY)
• - Opex: $485 million (down 8% YoY)
• - EBITDA: $2.159 billion (up 4% YoY)
• - Net Income: $1.270 billion (up 7% YoY)

In conclusion, ADNOC Gas is strategically positioning itself for sustainable growth through significant investments, efficient operational management, and broadening its market connections. The company continues to play a pivotal role in supplying gas to over 20 countries, covering around 60% of the UAE's sales gas needs. This quarter's performance reflects ADNOC Gas's commitment to fostering innovation and excellence in the global gas market.

For ongoing updates and insightful information about ADNOC Gas, please visit their official website: ADNOC Gas.