ADNOC Gas, the gas division of the Abu Dhabi National Energy Company, increased its net profit to $1.34 billion with a strong performance report in the third quarter of this year. This profit is double the net profit of $665 million in the second quarter of 2023 and reflects a significant improvement in domestic gas sales and LNG and sulfur exports.
Significant Increase in Revenues
The company's core earnings (EBITDA) also rose by 70% to $2.03 billion in the third quarter. Domestic gas sales of ADNOC Gas increased by 20% compared to the previous quarter, which is linked to steady market demand. Additionally, strong margins contributed to a 28% increase in domestic gas EBITDA during this period.
ADNOC Gas also increased its EBITDA by 106% compared to the previous quarter due to higher international product sales. Sulfur sales acted as an additional revenue source, with its EBITDA increasing by 249% from July to September. Following these successes, the company's board approved a $940 million dividend, which is a 5% increase from last year and will be paid in December 2026.
Future Forecasts and Challenges
ADNOC Gas raised its net income forecast for 2026 to at least $4 billion. However, the outlook for LNG exports from the Strait of Hormuz remains affected by regional maritime conditions. LNG flows from this strait have been severely disrupted, creating challenges for gas exporters in the region.
Despite these disruptions, ADNOC Gas is seeking business opportunities in the medium and long term. The company recently signed a contract with TotalEnergies to supply up to 1.6 million tons of LNG over the next five years. Fatima Al Nuaimi, CEO of ADNOC Gas, highlighted the strength of the company's LNG business and its ability to establish long-term partnerships that will contribute to growth and create sustainable value for shareholders.
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