Dubai, UAE – ADNOC Gas has reported net income of $1.3 billion for the first quarter of 2023, up 9 percent year-over-year, despite the challenging pricing environment caused by a decline in Brent crude oil prices.
The company’s Q1 2023 revenue was $5.2 billion, down from $6.2 billion for the same period in 2022, but the firm maintained an EBITDA margin of 34 percent in Q1 2023, only 1 percent lower than in Q1 2022.Â
The company used prevailing market conditions to undertake planned asset maintenance activities, which were completed on time and within budget, positioning it for higher volumes in Q2.
Lower prices and volumes were offset by the lower cost of raw gas supply, and ADNOC Gas’ long-term gas supply agreement provides reliable access to production from ADNOC’s upstream operations. The agreement permits ADNOC Gas to share in any price upside and provides downward protection in a lower-price environment.
The company remains focused on increasing production capacity and driving operational efficiencies to capitalise on growing global demand for natural gas.
ADNOC Gas signed a three-year agreement with TotalEnergies to export LNG from 2023 to 2025. The company is making progress on its $14 billion strategic and growth project portfolio, with key projects including maximizing ethane recovery and monetization, extending the gas pipeline network, and constructing an additional greenfield gas processing facility.
ADNOC Gas is targeting to pay a dividend of $1.625 billion in Q4 2023 in respect of the first half of 2023, and a further $1.625 billion dividend is targeted to be paid in Q2 2024 in respect of the second half of 2023.
The company expects to grow the annual target dividend amount from $3.25 billion by a growth rate of 5 percent per annum on a dividend-per-share basis over 2024-27.