ADNOC Gas Reports Record $5 Billion Profit for 2024, Supports Sustainable Growth
ADNOC Gas Reports Record Profit in 2024
In a significant announcement, ADNOC Gas plc has reported a remarkable net profit of $5 billion for the fiscal year 2024. This historic financial achievement marks a pivotal moment for the company as it continues to expand its operations and enhance its sustainability efforts. The net income represents an impressive 13% increase compared to the previous year, driven by strong domestic gas demand and improved pricing dynamics in the market.
Financial Highlights
According to the report, ADNOC Gas also achieved a record EBITDA of $8.65 billion, reflecting a 14% year-over-year growth. The company’s total sales volumes increased by 2% to reach approximately 3.616 million MMBTU, buoyed by a 13% rise in contributions from its joint venture, ADNOC LNG. The adjusted revenue for the year increased by 7% to $24.43 billion.
Fatema Al Nuaimi, the CEO of ADNOC Gas, stated, "Our record fourth-quarter results demonstrate our capacity to meet our ambitious growth strategy as we aim for over 40% EBITDA growth by 2029. The evolution of ADNOC Gas into one of the highest revenue-generating firms listed in the UAE showcases our commitment to delivering sustainable long-term value for our shareholders."
Strategic Focus on Growth
The company plans to invest significantly in growth projects aimed at meeting the increasing demand for domestic gas, liquefied petroleum gas (LPG), and liquefied natural gas (LNG), which are crucial for the energy transition towards lower carbon solutions. Part of this strategy involves a capital expenditure outlook of up to $15 billion for the period from 2025 to 2029, including the acquisition of a 60% stake in the Ruwais LNG project with lower carbon intensity, expected to complete in the second half of 2028.
Quarterly Performance
For the fourth quarter of 2024, ADNOC Gas reported adjusted revenues of $6.06 billion, an EBITDA of $2.28 billion, and a net income of $1.381 billion. This robust performance was attributed to several factors, including a richer gas mix, higher liquids production, and improved commercial terms in the domestic market.
Furthermore, ADNOC Gas has confirmed its annual dividend of $3.41 billion for 2024, demonstrating the solid free cash flow generated, which exceeds its dividend commitment by more than $1 billion. This aligns with the company’s established policy of increasing the annual dividend by 5% each year.
Looking Ahead
ADNOC Gas’s ambitious plans reflect an integrated approach to gas processing and the importance of adaptability in its business model as it navigates the complexities of the global energy market. By investing in key projects and enhancing operational efficiencies, the company aims to maintain its leadership in the gas sector while contributing to the UAE's broader economic diversification initiatives.
In conclusion, the record profits and sustainable growth pathway of ADNOC Gas illustrate the effectiveness of strategic planning in a competitive landscape, ensuring that the company not only meets the growing energy demands but also underscores its commitment to environmental sustainability and shareholder value.