ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has reported net profits of $4,720 million in 2023, an 8% decrease from last year’s results. However, the drop was less pronounced compared to market estimates reported by LSEG.
In contrast, the company reported very positive results for the last quarter of the year. Its Q4 net profit amounted to $1.35 billion, marking a 24% growth rate year-on-year (YoY), attributed to higher product prices and volume growth.
ADNOC Gas confirmed dividends of $3.25 billion for 2023. They will be paid in two instalments: an ‘inaugural’ interim cash dividend of $1.625 billion paid in December 2023 and a $1.625 billion to be paid in Q2 of 2024.
ADNOC Gas revealed its processed volumes rose to 912 Trillion British Thermal Unit (TBTU) in the last quarter of 2023, enough to supply 6 million homes with energy for 1 year, up 5% compared to the same period in 2022.
As a result, Q4 2023 EBITDA increased by 15% year-on-year to $2,212 million while net income for the quarter rose 24% year-on-year to $1,345 million.
“ADNOC Gas delivered a strong set of results in 2023, overcoming a challenging market environment in the first half of the year,” said Ahmed Alebri, Chief Executive Officer of ADNOC Gas. “Our strong performance is a testament to the resilience of the Company and our ability to maintain strong margins through the commodity cycle.”
ADNOC Gas supplies approximately 60% of the UAE’s sales gas needs and supplies end-customers in over 20 countries. The company’s financial results beat analysts’ mean estimates of $1.01 billion for Q4 and $4.34 billion for the full year.
In 2023, ADNOC Gas awarded a $3.6 billion contract for commissioning new capacity and expanding its gas processing facilities and invested $1.3 billion in expanding its natural gas pipeline network.
Last week, another ADNOC subsidiary, ADNOC Distribution, reported a 5% YoY drop in net profits, due to lower inventory gains compared to the previous year.
