ADNOC Gas Achieves Record Net Income of $5 Billion for 2024, Boosting Sustainable Growth Plans

ADNOC Gas Sets New Financial Records in 2024

ADNOC Gas plc, along with its subsidiaries, has announced a remarkable financial performance for the year 2024, achieving a record net income of $5 billion. This stellar achievement not only underscores the company's robust operational capabilities but also marks a significant step towards realizing its ambitious growth strategy.

Exceptional Financial Results

The financial outcomes for ADNOC Gas reflect a substantial year-on-year growth. The company reported an adjusted EBITDA of $8.65 billion, representing a 14% increase compared to the previous year. Additionally, ADNOC Gas confirmed an annual dividend totaling $3.41 billion, which aligns with its strategic goal of increasing dividends by 5% annually. This consistency in dividend growth emphasizes their commitment to delivering sustainable value to shareholders.

Total revenues reached $24.43 billion in 2024, up 7% from the prior year, driven by a diversified economy in the United Arab Emirates and robust demand for domestic gas. The company sold 3,616 million MMBTU of gas, reflecting a 2% increase in sales volumes, supported by a 13% growth in contribution from ADNOC LNG. The quarterly net profit for Q4 2024 also stood at a significant $1.38 billion, the highest since the company went public.

Growth Strategy and Future Ambitions

Fatema Al Nuaimi, CEO of ADNOC Gas, stated, “Our record results from the fourth quarter demonstrate our ability to implement our ambitious growth strategy, which aims for more than a 40% increase in EBITDA by 2029.” The strategic shift of the company emphasizes investments aimed at addressing the growing demand for low-carbon domestic gas, liquefied petroleum gas (LPG), and liquefied natural gas (LNG) as key components in the energy transformation.

The corporate strategy is aimed at making ADNOC Gas one of the leading revenue-generating entities within the UAE, implementing plans requiring up to $15 billion in capital expenditure from 2025 to 2029. This plan will support the acquisition of a 60% share in a low-carbon LNG project in Ruwais, further reinforcing its capacity and footprint in the energy sector.

Strong Cash Flows and Operational Efficiency

The company's ability to generate significant cash flow is evident as it recorded a remarkable $4.58 billion in free cash flow for the year. This figure is critical as it not only solidifies operational efficiency but also provides a buffer for further investment and shareholder returns.

ADNOC Gas reported adjusted Q4 revenues of $6.06 billion and an EBITDA of $2.28 billion, attributed to a richer gas mix and improved production. The operational performance during the quarter illustrated the effectiveness of the company’s updated business strategy which was unveiled in the latter half of 2024.

Commitment to Sustainability

As ADNOC Gas advances, the focus remains not only on financial growth but also on sustainability and environmental impact. The efforts to transition toward more sustainable and lower-carbon energy sources are paramount in its strategy, aligning with global trends and expectations regarding energy consumption and production.

In summary, ADNOC Gas's accomplishments in 2024 with a record net income, impressive growth metrics, and strategic plans for a sustainable future position the company as a frontrunner in the energy sector, shaping the landscape of low-carbon energy in the Middle East and beyond.

Conclusion

ADNOC Gas's record-breaking performance in 2024 not only reflects its operational strength and financial resilience but also its commitment to sustainable and responsible growth in the energy industry. As it continues to adapt to market dynamics, the company remains focused on delivering long-term value for shareholders while fulfilling its essential role in the energy transition.