ADNOC Gas Posts Stunning Profit Recovery as Energy Exports Rebound
ADNOC Gas doubled its net income to $1.34 billion for the third quarter from the previous quarter as it raised its domestic gas sales and LNG and sulfur exports.
The gas arm of Abu Dhabi’s national energy company ADNOC on Tuesday reported strong performance across its domestic gas, LNG, export-traded liquids (ETL), and sulfur businesses.
Net income jumped from $665 million for the second quarter to $1.34 billion for the third quarter, on core earnings, or EBITDA, soaring by 70% quarter-on-quarter to $2.03 billion.
ADNOC Gas’ domestic sales rose by 20% quarter-on-quarter, supported by resilient demand, while robust margins lifted domestic gas EBITDA by 28% in the same period.
The company also scaled up its international product sales, lifting EBITDA by 106% quarter-on-quarter. Sulfur sales provided additional earnings support, with EBITDA surging by 249% between July and September.
ADNOC Gas’ board approved a quarterly dividend of $940 million, up by 5% year-on-year and payable in December 2026. The dividend increase is in line with the company’s target to raise the dividend by 5% annually through 2030.
During the first nine months of the year, ADNOC Gas generated $3.82 billion of cash flow from operations, covering 1.3 times the $2.82 billion year-to-date dividend.
Following a strong third-quarter performance, ADNOC Gas raised its full-year 2026 net income guidance to at least $4 billion.
Looking forward, ADNOC Gas said its outlook for Strait of Hormuz LNG exports remains subject to developments in regional maritime conditions.
LNG flows from the Strait of Hormuz remain severely disrupted, challenging gas exporters in the region.
Despite the ongoing disruption, ADNOC Gas is looking to capture business in the medium to long term, and just last week it signed a deal to supply up to 1.6 million tons of LNG to TotalEnergies over the next five years.
“This agreement reflects the strength of our LNG business, the competitiveness of our supply offering and our ability to secure long-term partnerships that support growth, enhance resilience and create lasting value for shareholders,” ADNOC Gas CEO Fatema Al Nuaimi said last week.
Source: Oilprice