ADNOC Gas Reports Strong Q1 Financial Performance With Net Income Of USD 1.27 Billion

ADNOC Gas plc, along with its subsidiaries, reported a net income of $1.27 billion and EBITDA of $2.16 billion for the first quarter of 2025. This marks an increase of 7% and 4% respectively compared to the same period in 2024. The growth was primarily driven by heightened domestic gas demand due to robust economic expansion in the UAE, which boosted overall sales volumes.

In the first quarter, ADNOC Gas secured several mid to long-term LNG supply contracts worth approximately $9 billion with Indian Oil Corporation and JERA Global Markets from Japan. These agreements enhance ADNOC Gas's position as a key supplier of lower-carbon fuel and expand its international customer base, supporting global energy system transformation.

Fatema Al Nuaimi, CEO of ADNOC Gas, stated, "This has been another outstanding quarterly performance by ADNOC Gas, supported by our resilient business model in a lower oil price market, which significantly exceeded market expectations. These results come on the back of successful supply agreements and the optimisation of our ongoing shut-down programme designed to power our continued growth."

The company also improved operational efficiency by managing its planned shutdown programme effectively. This led to fewer offline days for its plants, resulting in increased processed volumes. Looking forward, ADNOC Gas plans to leverage its strong balance sheet to invest throughout economic cycles, aiming for over 40% EBITDA growth between 2023 and 2029.

During Q1, capital expenditure rose by 43% year-on-year as ADNOC Gas continues investing strategically to expand its business and meet long-term EBITDA goals. Project execution is progressing well, with a Final Investment Decision on the Rich Gas Development project anticipated in 2025.

Market Presence Expansion

The recent marketed offering of 3.1 billion shares increased ADNOC Gas's free float by 4%, reaching 9%. This positions the company for potential inclusion in the MSCI and FTSE indices as early as June and September respectively.

ADNOC Gas's strategic initiatives and financial performance underscore its commitment to growth amid evolving market conditions. By securing significant supply agreements and enhancing operational efficiency, the company is well-positioned for future success.

With inputs from WAM