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Adnoc gas posted a solid 2Q: Adnoc Gas saw its net income grow 21% y-o-y to USD 1.19 bn in 2Q 2024, according to its financials (pdf). The gas supplier booked USD 6.08 bn in revenues, climbing 13% y-o-y, driven by a favorable pricing environment, the company said in its earnings report (pdf). The robust earnings mark Adnoc’s “third quarter in a row” where revenues have surpassed USD 6 bn,” Adnoc Gas CFO Peter Van Driel said in a virtual media roundtable attended by EnterpriseAM UAE.
More exports drove growth: The company’s EBITDA from exports and traded liquids — which account for “two thirds of [Adnoc’s] revenues coming from exports,” according to Van Driel — rose to USD 1.09 bn in 2Q, up 13% y-o-y, on the back of an 8.8% increase in exports to 507 tn British thermal units (TBtu).
On a six-month basis, Adnoc Gas’ bottom line rose 21% y-o-y to USD 2.38 bn in 1H 2024. The company’s revenues amounted to USD 12.09 bn, up 14% y-o-y during the six-month period.
Looking ahead, Adnoc expects to post strong earnings in 3Q 2024, along with higher processing volumes, Van Driel said. However, as the company’s facilities are set to undergo maintenance in 4Q, with expected softer pricing and lower demand due to seasonality, Adnoc’s sales volumes are anticipated to be impacted in the last quarter.
Adnoc’s confidence in demand growth is high: Adnoc expects global gas demand to rise 14% by 2040, as new industries such as data centers, coupled with population growth, will drive demand for the transition fuel. “There are many markets that are upcoming and really start to convert to [liquified natural gas] import markets,” the CFO told Bloomberg (watch, runtime, 4:40). To meet growing demand, Adnoc gas plans to add 9.6 mn tons of LNG to its export portfolio from the Ruwais plant.
Strong projected growth was a big factor in the energy giant’s decision to build Ruwais, Van Driel said. “When [Adnoc] took the decision to build Ruwais, we were confident about three things. One, you need to have enough gas. Two, you need to understand how much it costs to build a facility, [and three,] you need to know that you can also sell all the LNG. If one of the three is not met, you would not have confidence in such a large project,” Van Driel said.
Dividends: Adnoc Gas will distribute USD 1.7 bn in dividends for its 2Q earnings in September, with the dividends for the full year set to total USD 3.41 bn.
WATCH THIS SPACE- Adnoc is currently working on a number of projects within the UAE, Van Driel said, without disclosing the details of the projects. “[These projects] will make sure that if there is more raw gas, we will be able to process it,” he added.
REMEMBER- Adnoc Gas plans to develop projects worth USD 13 bn over the next five years in both domestic and international markets to expand its processing capacity by 20%, Adnoc Gas’ COO Mohamed Al Hashemi said in an interview with Sky News Arabia Business (watch, runtime, 1:18).
