ADNOC Gas released an updated growth strategy alongside a strong set of numbers for the third quarter of 2024.
The Abu Dhabi company targets an increase of over 40 per cent in EBITDA by 2029 and plans a capital expenditure (CAPEX) of up to $15 billion for the period 2025-2029.
ADNOC Gas reports strong performance in Q3 2024
ADNOC Gas reported an 11 per cent year-on-year (YoY) increase in net income to $1.24 billion, beating Bloomberg consensus for the quarter. With higher sales volumes and an improved price environment for export-traded liquids, Q3 revenues rose to $6.281 billion, up 8 per cent YoY, exceeding $6 billion for the fourth quarter in a row. EBITDA increased 18 per cent YoY to $2.205 billion, with a 35 per cent EBITDA margin. Free cash flow was $1.184 billion.
Fuelled by better LPG and LNG pricing in the first nine months of 2024, net income increased 18 per cent YoY to $3.62 billion. This is attributable to volumes of export traded liquids and LNG increasing 6.5 per cent, gas sales rising by 4.5 per cent YoY, and domestic gas growth of 3.5 per cent. EBITDA for the 9M 2024 was $6.37 billion, up 18 per cent YoY.
Dr Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented: “Our Q3 results are a testament to our robust performance while our updated strategy supports future-proofing our business, aiming for over 40 per cent EBITDA growth by 2029.
“We’re committed to delivering exceptional shareholder value with our ambitious growth plans and an expected 5 per cent annual dividend increase.
“By advancing our projects and optimising our existing assets, we will continue to support the UAE’s industrial diversification while delivering more gas to our domestic customers through our expanding infrastructure.
“Additionally, through our decarbonisation initiatives, we will help meet rising global demand for lower-carbon natural gas, positioning ADNOC Gas as a leader in the sustainable global gas industry.”
The UAE’s annual growth in gas demand to 2030 is expected to be 6 per cent, driven by higher economic activity, population growth, and industrial expansion (especially in AI data centres and the food industry). This compares to an expected 2 per cent rise in demand perceived at the time of the company’s IPO.
To accommodate this new demand growth and meet its objective of 40% EBITDA growth, ADNOC Gas plans to increase Capex from $13 to $15 billion.
ADNOC Gas’ major focus until 2029 will be on the development and delivery of three large projects under construction – Maximisation of Ethane Recovery and Monetisation (MERAM) project, which will deliver up to 3.4 million tonnes per annum (mtpa) of ethane and NGL production capacity; the IGD-E2 project, which will have a gas processing capacity of 370 million standard cubic feet per day; and Ruwais LNG, which will have the capacity to produce up to 9.6 mtpa of LNG.
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