ADNOC Gas has recorded revenues of $9 billion plus for H1-2024 as UAE's population growth and demand from its industrial sector fueled its financials. The corresponding top-line number for 2023 was $8.16 billion. The company provides more than 60 per cent of the domestic demand for gas.
Net income for H1-2024 was $2.37 billion against $2.25 billion a year ago, and 'exceeding expectations'.
The ADNOC entity, which has confirmed a 5 per cent annual dividend hike, will be releasing $1.7 billion in September. The approved interim dividend equals 8.164 fils a share of 8.164 fils. A planned final dividend - also of $1.7 billion - will be distributed in April 2025.
The revenue intake for ADNOC Gas for the first-half has actually topped $12 billion once the contributions from its stake in ADNOC LNG and others are integrated. (Based on these, ADNOC Gas' Q2-2024 revenues would be over $6 billion, something that it achieved in Q4-23 and Q1-24 as well.)
“Our robust Q2 results clearly reflect our focus on growth, significantly strengthening revenues and profitability while continuing to maintain a healthy margin," said Dr. Ahmed Alebri, CEO. "The 21 per cent improvement in Q2 net profit underlines our commitment to enhancing our performance, implementing efficiencies, and optimizing costs."
Medium-term prospects
ADNOC Gas forecasts global gas demand to go through a 14 per cent increase by 2040. Specific to the UAE, demand will likely 'exceed global growth significantly'. Apart from higher GDP and population driving demand, there is also the government 'initiatives to attract new industries to the UAE including AI data centres'. (These facilities require high energy consumption.)
Ruwais LNG update
Its ongoing development of the Ruwais LNG project will start bearing results from 2028, which is when deliveries are expected to start. This will create two LNG liquefaction trains with a total export capacity of 9.6mmtpa.
As of now, ’70 per cent of Ruwais LNG production capacity (are already) secured through sales commitments’. (On the development side, a sizeable $5.5 billion worth of EPC contracts have been awarded for the two LNG trains'.
In June, ADNOC had announced a Final Investment Decision (FID) on the Ruwais LNG project and in July, it signed up Mitsui & Co, Shell, bp, and TotalEnergies as equity partners, each taking 10 per cent.
"ADNOC Gas is managing the design and construction and has reaffirmed its intention to become an equity partner, and operator, of Ruwais LNG by acquiring ADNOC’s stake," said a statement.
