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ADNOC Gas reports 13% Q-o-Q increase in Q3 2023 net income to $1.1 billion

ADNOC Gas reports 13% Q-o-Q increase in Q3 2023 net income to $1.1 billion
14 Nov 2023 19:54

ABU DHABI (WAM): ADNOC Gas plc, a world-class integrated gas processing company, today announced its financial results for the three months and nine months ended September 30, 2023 (Q3 2023 and 9M 2023).

ADNOC Gas continued to deliver robust financial and operational performance in a volatile market environment marked by consumer and geo-political pressures. The company’s Q3 2023 revenue grew to $5.807 billion, representing an 8 per cent growth compared to Q2 2023, in line with the improving price environment and higher sales volumes. Despite market volatility, the company maintained stable margins in line with its guidance and previous periods. Further, ADNOC Gas continued to deliver on its growth strategy, focusing on increased efficiency to enable the export of higher-margin liquids.

The company’s Q3 2023 EBITDA improved to $1.863 billion, up 5 per cent compared to Q2 2023, while net income for the quarter increased by 13 per cent quarter-on-quarter (Q-o-Q) to $1.116 billion. These results underscore the business’ resilience and its ability to capitalise on optimisation and growth opportunities. A nine-month net income of $3.375 billion reflects the lower pricing environment compared to the same period of 2022.

Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented: “ADNOC Gas has delivered robust financial results for the first nine months of the year despite a lower pricing environment compared to 2022. In the third quarter, we maintained stable EBITDA and net income margins, demonstrating our resilience and ability to generate attractive returns despite market headwinds.

“We have made significant progress, delivering on our growth strategy through substantial investments with $5.6 billion in contracts awarded in the first nine months of 2023. This includes the Engineering Procurement and Construction contract awarded for the construction of carbon capture units, which is a significant milestone in our decarbonisation journey, helping us further decarbonize our operations in line with ADNOC’s bold Net-Zero by 2045 ambition.

“Expanding further into low carbon products, in the first nine month of the year, ADNOC Gas has concluded new LNG supply deals with a total value of $9-12 billion. We have expanded our international customer base through newly signed agreements with very reputable counterparties, mainly from Asia.

“I’m pleased to announce that our strong free cash-flow generation during the first nine months of the year fully covers our full-year dividend for 2023. In line with our previous shareholder guidance, we will distribute our inaugural interim cash dividend in December this year.”

So far in 2023, ADNOC Gas has awarded contracts totaling $5.6 billion. As part of its growth strategy, the company recently awarded a $3.6 billion contract to commission new capacity and expand its gas processing facilities in the UAE, enabling optimised supply to the Ruwais Industrial Complex. In addition, the company also awarded a $615 million contract for a carbon capture project. This follows the Q2 award of $1.34 billion in contracts for expanding its natural gas pipeline network as part of the ESTIDAMA program, aimed at enabling the supply of higher volumes of natural gas to customers in the Northern Emirates.

Source: WAM
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