Abu Dhabi, UAE — ADNOC Gas Friday reported a revenue of AED 38.9 billion ($10.6 billion) for the first half of 2023, compared to pro-forma adjusted revenue of AED 48.8 billion in H1 2022 due to lower gas prices.
The second quarter revenue stood at AED 19.8 billion, compared to Pro Forma Adjusted Revenue of AED 26.1 billion in Q2 2022.
ADNOC Gas said in a statement that the company maintained high reliability with a 98.9 percent average across its facilities in H1 2023, contributing to a 15 percent increase in production volumes in Q2 2023 over Q1 2023.
ADNOC Gas adapted to lower LPG and Brent crude oil prices in H1 2023 compared to the high pricing environment of H1 2022. The company shifted towards higher-margin export liquids and focused on increased efficiency.
These measures enabled the company to maintain a flat EBITDA of AED 6.6 billion and net income of AED 3.7 billion in Q2 2023, ADNOC said.
Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented, “Our results for the first half of 2023 showcase the resilience and robustness of our business in the current lower price environment compared to the higher prices witnessed in H1 2022.”
“For the period ending June 30, 2023, we delivered a net income of AED 8.4 billion ($2.3 billion). This performance demonstrates the strength of our business, which was also supported by selling more high-margin export liquids – a strategy that has proven effective,” he said.
The company recently awarded AED 4.2 billion in contracts for extending its natural gas pipeline to over 3,500 km, serving the Northern Emirates, marking another key milestone for the sales gas pipeline network enhancement (ESTIDAMA) program.
ADNOC Gas announced an AED 26-33 billion 14-year supply agreement with Indian Oil Corporation Ltd. (IOCL) for the export of up to 1.2 mmtpa of LNG. This comes on the heels of the Company’s Q2 2023 signing of a supply agreement with TotalEnergies Gas and Power for the export of LNG to various markets around the world. In February, ADNOC Gas made the first-ever delivery of LNG from the Middle East to Germany, paving the way for longer-term deliveries.
ADNOC Gas maintains its dividend target of AED 5.968 billion (US$1.625 billion) in the fourth quarter of 2023 and a further AED 5.968 billion (US$1.625 billion) dividend in the second quarter of 2024.