Adnoc Gas reports higher net income, revenue in Q1

Adnoc’s gas and LNG unit, Adnoc Gas, reported higher net income and revenue in the first quarter of this year due to higher sales volumes in the UAE.

Adnoc Gas said on Tuesday its revenue reached $6.01 billion in the first quarter, up by 15 percent compared to $5.22 billion in the same quarter last year.

Revenue dropped 5 percent compared to $6.3 billion in the prior quarter.

Adnoc Gas said revenue rose compared to the last year dur a strong increase in demand in the UAE, which saw overall sales volumes increase by 14 percent year-on-year.

As a result of the improved revenue, first quarter earnings before interest, taxes, depreciation, and amortization (Ebitda) increased to $2.07 billion, a 17 percent year-on-year increase.

Moreover, Adnoc Gas said its adjusted net income improved by 21percent year-on-year to $1.18 billion million while its domestic gas net income unit margin improved by 20 percent.

Adnoc Gas fulfils more than 60 percent of the UAE’s gas demand and is the largest supplier to the petrochemical sector in the country.

“While delivering improvement across all key metrics, we have made significant progress on our strategic growth projects, including signing additional LNG sales agreements that reinforce our position as a trusted and reliable global supplier,” Ahmed Alebri, CEO of Adnoc Gas, said.

LNG expansion

Adnoc Gas recently said it plans to plans to invest over $13 billion in domestic and international growth opportunities over the next five years.

The company aims to more than double its LNG production capacity by 2028 with the addition of the planned Al Ruwais LNG plant.

Last year, Adnoc Gas signed LNG supply deals with France’s TotalEnergies, India’s top state oil refiner Indian Oil, Japan Petroleum Exploration (Japex), state-owned PetroChina, and Jera Global Markets.

The firm also signed in January this year a long-term deal with India’s largest gas utility GAIL.

Adnoc owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.

Besides this terminal, Adnoc is also working on the second LNG export plant in Al Ruwais with a capacity of 9.6 mtpa.

In December, the company signed its first LNG supply deal for this terminal with China’s ENN, and in March this year it signed the second deal with a unit of German gas importer Securing Energy for Europe (SEFE).

Adnoc has also issued a limited notice to proceed for early engineering, procurement, and construction activities to a joint venture led by France’s Technip Energies for its planned LNG terminal in Al Ruwais.

The firm expects to take a final investment decision on the project this year.

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