Adnoc Gas says 2024 net income climbs to $5 billion

Adnoc’s gas and LNG unit, Adnoc Gas, reported a net income of $5 billion in 2024, a rise of 13 percent year-on-year.

UAE’s Adnoc Gas said on Thursday this is a record for the full year and its highest quarterly income of $1.38 billion since its IPO.

The company attributed the “strong” performance to robust demand for domestic gas, which supported volume growth and improved pricing.

Das Island LNG volumes climb

Adnoc Gas said total sales volumes in FY 2024 increased by 2 percent to 3,616 million MMBTU.

Moreover, this increase in volume was enabled by a 13 percent increase in the Adnoc LNG (ALNG) joint venture contribution, it said.

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

Besides the Das Island facility, Adnoc is building its second LNG terminal in the UAE.

Adnoc Gas said in November 2024 it expects to splash about $5 billion to buy a 60 percent operating interest from its parent Adnoc in the 9.6 mtpa Al Ruwais LNG export plant.

Revenues reach $24.43 billion

Adjusted revenues increased by 7 percent in FY 2024 to $24.43 billion driven by a 2 percent increase in sales volume and improved pricing.

The company’s “strong” top line performance for 2024 translated into Ebitda growth of 14 percent to $8.65 billion with a high, stable margin of 35 percent, Adnoc Gas said.

Also, free cash flow for the period reached $4.58 billion.

Adnoc Gas said the company’s fourth-quarter results reflect the ongoing disciplined execution of its updated strategy that was unveiled after Q3 2024.

The plan targets an increase of over 40 percent in Ebidta by 2029 and also entails capital expenditure (CAPEX) of up to $15 billion for the 2025-2029 period, which includes the acquisition of Adnoc’s 60 percent share of the Ruwais LNG project in H2 2028.

ADNOC Gas delivered adjusted revenues of $6.06 billion, Ebidta of $2.28 billion and net income of $1.381 billion in the fourth quarter of 2024.

“The robust improvement was driven by several factors including a richer mix of gas, producing more liquids, and improved commercial terms in the domestic market,” it said.

Dividend

For the financial year 2024, Adnoc Gas confirmed its dividend of $3.412 billion, of which an interim cash dividend of $1.706 billion was paid in September 2024 and an additional $1.706 billion is expected to be paid in April 2025, pending approval at the AGM.

“The final dividend for FY 2024 is in line with the company’s robust policy to increase the annual dividend by 5 percent annually and reflects the company’s strong free cash flow, which exceeds the dividend commitment by over $1 billion,” Adnoc Gas said.

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