ADNOC Gas reported a 15 per cent year-on-year increase in revenues to $6.011 billion, while adjusted net income improved by 21 per cent to $1.19 billion for the first quarter ending March 31.
The net profit was higher than LSEG’s expected estimate of $1.11 billion.
Overall sales volumes increased by 14 per cent, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 17 per cent to $2.07 billion.
ADNOC Gas fulfills more than 60 per cent of the UAE’s gas demand and is the largest supplier to the petrochemical sector in the country. Domestic revenue grew by 10 per cent, while operational efficiencies helped its domestic net income unit margin improve by 20 per cent YoY.
ADNOC Gas’ profitability was backed by a high cash conversion rate. Free cash flow generation was up 47 per cent YoY to $1.19 million.
Dr Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented: “Fuelled by robust sales volumes and ongoing margin improvement in our core domestic operations, we’re proud to have achieved a 21 per cent increase in adjusted net income.
“While delivering improvement across all key metrics, we have made significant progress on our strategic growth projects, including signing additional LNG sales agreements that reinforce our position as a trusted and reliable global supplier.
“Our robust cash flow generation will enable us to grow the annual dividend by 5 per cent to $3.41 billion in 2024, in line with our dividend policy.”
The Company plans to invest more than $13 billion in domestic and international growth opportunities between 2024 and 2028, with its predictable margin business expected to grow its EBITDA by up to 40 per cent.
ADNOC Gas is also well-positioned to benefit from ADNOC’s planned expansion of oil production capacity to five million barrels per day by 2027, which will contribute to an increase in associated gas production.
The company is seeking to grow internationally and acquire new positions in the gas value chain in Europe, India, China and South-East Asia to enhance the UAE’s presence in international LNG markets and generate an additional return.
In Q1 2024, ADNOC Gas continued to make progress with its strategic growth projects, like the Ruwais LNG project, incurring $387 million in CapEx, up 123 per cent YoY.
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