Today's Edition
ABU DHABI (ALETIHAD)
ADNOC Gas reported strong financial results for the first half of 2025, with net income rising 12% year-on-year to $2.655 billion and EBITDA increasing 6% to $4.415 billion. Total revenue for the period held steady at $12.059 billion, despite a 14% year-on-year drop in Brent crude prices.
The second quarter marked a major milestone for the company, with ADNOC Gas posting its highest-ever quarterly net income of $1.385 billion—up 16% from the same period last year. Q2 EBITDA rose to $2.256 billion, reflecting an 8% annual increase, while the company maintained an industry-leading asset reliability rate of 97.6%. Revenues for Q2 totalled $5.96 billion, slightly lower than the $6.076 billion recorded a year earlier, largely due to softer prices in certain export products.
Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said: “We are pleased to report the highest quarterly net income in ADNOC Gas’ history, fuelled by our strong local market business and improved operational efficiency. This performance shows that we are well on our way to achieving our ambition of over 40% EBITDA growth between 2023 and 2029, as outlined in our strategy update last November. With healthy cashflows and robust margins, we remain well-positioned for long-term growth, and our resilient business model continues to deliver strong returns.”
Domestic gas continued to be a key growth driver, with revenue in Q2 increasing to $1.982 billion, up from $1.725 billion in the same period last year. This was supported by favourable contract prices and higher volumes. The company’s Export & Traded Liquids segment generated $3.102 billion in Q2 revenue, down from $3.624 billion a year earlier, due to lower price realisations. Meanwhile, sulphur sales more than doubled year-on-year to $96 million, and ADNOC Gas’s share of ADNOC LNG JV sales rose to $766 million.
Operationally, ADNOC Gas maintained a strong focus on cost control and asset optimisation. The company’s EBITDA margin improved to 36.6% in H1 and 37.9% in Q2, with net income margin for Q2 reaching 23.2%, up from 19.6% in the same period last year. ADNOC Gas also reduced cost of goods sold (COGS) by 3% year-on-year in H1, helped by a favourable feedstock cost structure under the 25-year Gas Supply and Purchase Agreement with ADNOC Upstream.
Capital expenditure in H1 surged 49% to $1.22 billion as the company accelerated investment in strategic growth projects. These include the $5 billion final investment decision on the first phase of the Rich Gas Development (RGD) project.
“In the near and medium term, the Company expects to deliver the Integrated Gas Development Expansion – Phase 2 (IGDE-2), Maximizing Ethane Recovery and Monetization (MERAM), and to take the investment decision on the remaining two phases of the RGD project,” the company said.
The company reaffirmed its focus on LNG as a growth area, highlighting the Ruwais LNG project as a key future contributor to revenue and margin expansion. ADNOC Gas supplies about 60% of the UAE’s domestic gas demand and exports to over 20 international markets.
The Board of Directors approved an interim dividend of $1.792 billion for H1 2025, a 5% increase from last year, with payment scheduled for September. This continues the company’s commitment to grow dividends by 5% annually between 2023 and 2027.
Following its inclusion in the MSCI Emerging Markets Index in June, ADNOC Gas experienced net capital inflows of around $500 million. The company is now on track to join the FTSE Index in September 2025, with market estimates of additional inflows exceeding $200 million, a move expected to further deepen liquidity and broaden the investor base.
ADNOC Gas also marked a technological milestone with the rollout of MEERAi, an AI tool designed for real-time, data-driven decision-making at the board level, reinforcing its ongoing commitment to innovation and digital transformation.
