Adnoc’s gas and LNG division, Adnoc Gas, reported second-quarter net profit of $1.19 billion, up 21 percent year-over-year.
United Arab Emirates-based Adnoc Gas said on Monday it was a record net profit for the company, beating market expectations.
The company’s sales reached $6.07 billion in the second quarter, an increase of 13 percent over the same quarter last year.
Compared to the previous quarter, sales increased by 1 percent. Net profit remained almost unchanged compared to the first quarter at 1.18 billion.
Adnoc Gas said EBITDA growth in the quarter exceeded revenue growth, reaching $2.08 billion, an increase of 18 percent year-on-year.
The company’s EBITDA margin of 34 percent was supported by strong sales demand and the benefits of its long-term gas supply and purchase agreement, it said.
Adnoc Gas supplies more than 60 percent of the UAE’s gas needs and is the largest supplier to the country’s petrochemical industry.
The company has announced a 5 percent increase in its annual dividend per share, consistent with its dividend policy of paying a total of $3.41 billion for the full year 2024.
Adnoc Gas has approved an interim dividend of $1.7 billion, which is scheduled to be paid in September.
“We are well positioned to deliver on our ambitious growth agenda, which is underpinned by the strength, expansion and ambition of the UAE market,” Ahmed AlebriCEO of Adnoc Gas, said.
LNG expansion
Adnoc Gas announced earlier this year that it plans to invest more than $13 billion in domestic and international growth opportunities over the next five years.
By expanding the planned Al Ruwais LNG plant, the company aims to more than double its LNG production capacity by 2028.
Last year, Adnoc Gas signed LNG supply contracts with French company TotalEnergies, India’s largest state-owned oil refiner Indian Oil, Japan Petroleum Exploration (Japex), state-owned PetroChina and Jera Global Markets.
The company also signed a long-term contract with India’s largest gas utility GAIL in January this year.
Adnoc owns a 70 percent stake in Adnoc LNG, which currently produces about 6 million tonnes of liquefied natural gas per year at its facilities on Das Island.
In addition to this terminal, Adnoc will build a second LNG export facility in Al Ruwais with a capacity of 9.6 million tonnes per year.
In June, state-owned company Adnoc made a final investment decision to build the LNG export terminal in Al Ruwais.
Adnoc also awarded the $5.5 billion EPC contract to a joint venture led by French company Technip Energies.
The LNG project will consist of two trains of 4.8 million tonnes per year each, with a total capacity of 9.6 million tonnes per year. This will more than double Adnoc’s existing LNG production capacity in the UAE to around 15 million tonnes per year as the company expands its international LNG portfolio.
BP, Mitsui & Co., Shell and TotalEnergies also recently agreed to acquire a 10 percent stake in Adnoc’s LNG export terminal in Al Ruwais.
Adnoc will retain a majority stake of 60 percent.
