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Adnoc Gas said net income dropped just 8 percent below the previous quarter, “amid increased regional uncertainty and difficult market conditions, which have caused major disruption in the energy sector and to maritime movements through the Strait of Hormuz.”
The company produced $572 million in free cash flow and closed the quarter with $4.2 billion in cash on its balance sheet.
Adnoc Gas’ “strong” financial position enables ongoing investment throughout market cycles supporting its commitment to meet the 2026 dividend outlook and its policy of annual dividend growth at 5 percent until 2030, it said.
The company’s board has approved a quarterly dividend of $941 million, set for payment in June.
Q2 results impact
Adnoc Gas experienced two security-related incidents at the Habshan site on April 3 and 8, prompting activation of standard response and continuity protocols.
Within a short period, 60 percent of the complex’s processing capacity was restored, and the company is currently working toward achieving 80 percent restoration by the end of 2026, with full capacity restored in 2027.
While commodity prices rose significantly, disruption to maritime movements through the Strait of Hormuz continues to impact liftings of Adnoc Gas products.
The company previously said it made “temporary adjustments” to its LNG production in response to ongoing shipping disruption in the Strait of Hormuz.
According to Adnoc Gas, the ongoing closure of the Strait of Hormuz is expected to affect the company’s Q2 net income, with projections indicating a range between $400 million and $600 million assuming maritime operations return to normal prior to the end of the quarter.
On the assumption that the Strait is open for the second half of 2026, higher LNG and LPG prices, in line with the current Brent forward curve, are expected to help offset deferred volumes.
Adnoc Gas anticipates full-year 2026 net income to range from $3.5 billion to $4 billion, with this outlook reflecting the expected impact of the second quarter.