ADNOC Gas Achieves Record $5 Billion Net Income For Financial Year 2024

ADNOC Gas plc and its subsidiaries have reported record earnings for the fiscal year 2024, reaching $5 billion. The company also achieved its highest quarterly income of $1.38 billion since its initial public offering. This strong performance is attributed to a robust demand for domestic gas, which supported volume growth and improved pricing.

Fatema Al Nuaimi, CEO of ADNOC Gas, stated, "Our record-breaking fourth quarter results demonstrate our ability to deliver on our ambitious growth strategy as we seek to realise EBITDA growth of over 40 percent by 2029." The company's evolution into a leading income-generating entity in the UAE highlights its commitment to creating long-term value for shareholders.

For the full year, adjusted net income rose by 13% compared to the previous year, reaching $5 billion. Total sales volumes increased by 2% to 3,616 million MMBTU. This was supported by a 13% rise in contributions from the ADNOC LNG joint venture. Adjusted revenues grew by 7% year-on-year to $24.43 billion.

The company's strategic plan unveiled after Q3 2024 aims for over 40% EBITDA growth by 2029. It includes capital expenditure up to $15 billion from 2025-2029. This plan involves acquiring ADNOC's 60% share in the Ruwais LNG project with lower carbon intensity, expected in H2 2028.

In Q4 2024, ADNOC Gas reported adjusted revenues of $6.06 billion and an EBITDA of $2.28 billion. The net income stood at $1.381 billion for this period. These results were driven by a richer gas mix, increased liquid production, and improved commercial terms domestically.

The company's strong top-line performance translated into a significant EBITDA growth of 14%, amounting to $8.65 billion with a stable margin of 35%. Free cash flow reached an impressive $4.58 billion, showcasing ADNOC Gas's strong cash conversion capabilities.

Dividend Policy and Shareholder Returns

ADNOC Gas confirmed a dividend of $3.412 billion for FY 2024. An interim cash dividend of $1.706 billion was paid in September 2024, with another payment expected in April 2025 pending approval at the Annual General Meeting.

The final dividend aligns with the company's policy to increase annual dividends by 5%. This reflects strong free cash flow exceeding the dividend commitment by over $1 billion, ensuring substantial returns for shareholders.

The fourth-quarter results highlight ADNOC Gas's disciplined execution of its updated strategy post-Q3 2024. The company remains focused on meeting growing demands for lower-carbon domestic gas, LPG, and LNG both locally and globally as key fuels in energy transformation.

With inputs from WAM