ADNOC Gas PLC achieved its highest-ever yearly net income in 2024 at $5 billion, driven by natural gas consumption in the United Arab Emirates.
Net earnings for the fourth quarter of 2024 totaled $1.38 billion, ADNOC Gas’ highest quarterly result since its public listing in 2023, the company reported on its website.
“The company’s strong performance was underpinned by robust demand for domestic gas which supported volume growth and improved pricing”, said ADNOC Gas, the integrated gas processing arm of Abu Dhabi National Oil Co. (ADNOC).
Annual sales volumes grew two percent to 3,616 million MMBtu. ADNOC Gas supplies about 60 percent of the UAE’s sales gas needs, as well as supplies over twenty countries, according to the company.
Adjusted revenue for 2024 rose seven percent year-on-year to $24.43 billion. “The company’s strong top-line performance for 2024 translated into a strong EBITDA growth of 14 percent to $8.65 billion with a high, stable margin of 35 percent”, ADNOC Gas said.
For the fourth quarter, adjusted revenue was $6.06 billion and EBITDA $2.28 billion. “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”, ADNOC Gas said.
Year-end free cash flow was $4.58 billion, with the October-December period contributing $1.22 billion.
ADNOC Gas declared a dividend of $3.41 billion for 2024, half of which was paid September 2024. It expects to distribute the remaining half this April.
“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”, it said.
ADNOC Gas chief executive Fatema Al Nuaimi commented, “Our record-breaking fourth quarter results demonstrate our ability to deliver on our ambitious growth strategy as we seek to realize EBITDA growth of over 40 percent by 2029”.
“ADNOC Gas’ evolution into one of the highest income generating companies listed in the UAE, which is a testament to our commitment to create long-term and sustainable value for our shareholders, as we invest in growth projects to meet the growing demand for lower-carbon domestic gas, LPG and LNG, both locally and globally as key fuels in the energy transformation”, Al Nuaimi added.
Earlier ADNOC Gas raised its planned 2025-29 capex of $13 billion to $15 billion to capitalize on growing domestic gas demand.
“In the UAE, the annual growth in gas demand to 2030 is expected to be 6 percent, versus an expected 2 percent at the time of the IPO [initial public offering]”, ADNOC Gas said in a statement November 11, 2024. “This strong increase in demand will be driven by higher economic activity, population growth and industrial expansion, underpinned by AI data centers and the food industry”.
During the five years, ADNOC Gas aims to complete three gas projects, including the Big Oil-backed Ruwais LNG. Targeted to start production 2028, the 9.6 million tons per annum (MMtpa) facility would more than double ADNOC’s LNG output.
The other two are the Maximization of Ethane Recovery and Monetization Project, which is planned to produce up to 3.4 MMtpa of ethane and natural gas liquids, and the IGD-E2 project, designed to have a gas processing capacity of 370 million cubic feet a day.
“The updated growth strategy also advances the design and concept study of large-scale pre-FID [final investment decision] projects to accommodate a significant increase in the company’s gas processing capabilities as ADNOC expands its upstream production capacity, as well as the Bab Gas Cap project, which are expected to be completed after 2029”, ADNOC Gas said.
ADNOC Gas expects Bab Gas Cap, which will serve the onshore Bab field, to add 1.9 billion cubic feet per day of processing capacity.
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