ADNOC Gas Reports Impressive Q1 Earnings of $1.27 Billion Amid Market Expectations
ADNOC Gas Achieves Strong Financial Performance in Q1 2025
ADNOC Gas plc, alongside its subsidiaries, has made headlines with its captivating financial results for the first quarter of 2025. The company announced a net income of $1.27 billion, representing a substantial 7% year-over-year increase, which notably surpasses market expectations. Furthermore, the earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $2.16 billion, reflecting a steady growth of 4% compared to the previous year.
This outstanding performance is primarily attributed to the sustained demand for domestic gas, driven by robust economic growth in the UAE. The company successfully capitalized on this increased demand, resulting in a notable rise in the total sales volume. Additionally, efficient management of planned shutdowns optimized processing capacity, leading to enhanced processed volumes.
Fatema Al Nuaimi, CEO of ADNOC Gas, expressed her enthusiasm over the quarterly results, highlighting the resilience of the company’s business model amidst lower oil prices. She stated, "This has been another exceptional quarterly performance for ADNOC Gas, significantly exceeding market expectations. This achievement is underscored by successful supply agreements and the optimization of our ongoing shutdown program, aimed at fostering continued growth."
Looking forward, ADNOC Gas intends to leverage its strong balance sheet by investing throughout the business cycle, aspiring for a long-term EBITDA growth exceeding 40% by 2029.
During the first quarter, ADNOC Gas also signed multiple medium- to long-term liquefied natural gas (LNG) supply agreements worth approximately $9 billion with the Indian Oil Corporation and Japan's JERA Global Markets. These agreements reinforce ADNOC Gas’s status as a leading provider of low-carbon fuel and contribute to expanding its international customer base while transforming global energy systems.
Moreover, the company’s capital expenditure (CAPEX) surged by 43% year-on-year in Q1, which reflects its commitment to necessary investments to expand its operations and achieve long-term EBITDA targets. The company's project execution remains on track, and ADNOC Gas anticipates making a final investment decision on the development of a gas-rich project in 2025.
Following the recently completed commercial offering of 3.1 billion shares, increasing the free float between 4% and 9%, ADNOC Gas is poised for a potential inclusion in the MSCI and FTSE indices by June and September, respectively.
In summary, ADNOC Gas's impressive results for Q1 2025 demonstrate not only its financial stability but also its strategic positioning to capitalize on rising demand for natural gas in the UAE and internationally, setting a positive trajectory for future growth.
Financial Overview
| Q1 2024 | Q4 2024 | Q1 2025 | Year-over-Year % | Quarter-over-Quarter % | |
|---|---|---|---|---|---|
| ----- | - | - | - | --- | ------ |
| Revenues | 6,011 | 6,060 | 6,099 | 1% | 1% |
| Cost of Goods Sold | -3,410 | -3,299 | -3,455 | 1% | 5% |
| Operating Expenses | -525 | -479 | -485 | -8% (decrease) | 1% |
| EBITDA | 2,076 | 2,282 | 2,159 | 4% | -5% (decrease) |
| Net Income | 1,187 | 1,810 | 1,270 | 7% | -8% (decrease) |
| EBITDA Margin | 34.5% | 37.7% | 35.4% | 87 bps (increase) | -226 bps (decrease) |
| Net Income Margin | 19.7% | 22.8% | 20.8% | 107 bps (increase) | -197 bps (decrease) |
| Free Cash Flow | 1,144 | 965 | 1,214 | 6% | 26% |
The financial metrics reflect ADNOC Gas's strong market position and operational efficiency, taking advantage of favorable conditions in both domestic and international markets.
Topics Financial Services & Investing）
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