ADNOC Gas and Subsidiaries Earn $5 Billion in 2024

ADNOC Gas, a world-class integrated gas processing company and its subsidiaries, on Thursday announced record earnings of $5 billion for FY2024, and its highest quarterly income of $1.38 billion since its Initial Public Offering (IPO), significantly ahead of the Bloomberg consensus for both periods.

For the full year period, adjusted net income increased by an impressive 13% year-on-year to $5 billion, ADNOC Gas said.

The company’s strong performance was underpinned by robust demand for domestic gas which supported volume growth and improved pricing. Total sales volumes in 2024 increased by 2% to over 3.61 billion MMBTU. This increase in volume was enabled by a 13% increase in the ADNOC LNG (ALNG) joint venture contribution.

Adjusted revenues increased by 7% y-o-y in 2024 to $24.43 billion driven by a 2% increase in sales volume and improved pricing.

The company’s strong top line performance for 2024 translated into a strong EBITDA growth of 14% to $8.65 billion with a high, stable margin of 35%. Free cash flow for the period reached an impressive $4.58 billion, reflecting the company’s strong cash conversion capabilities.

The company’s fourth quarter results in 2024 reflected the ongoing disciplined execution of its updated strategy that was unveiled after the previous quarter.

The plan targets an increase of over 40% in EBITDA by 2029 and entails capital expenditure (CAPEX) of up to $15 billion for the 2025-2029 period, which includes the acquisition of ADNOC’s 60% share of the lower-carbon intensity Ruwais liquefied natural gas (LNG) project at cost in H2 of 2028.

ADNOC Gas delivered adjusted revenues of $6.06 billion, EBITDA of $2.28 billion and net income of a little over $1.38 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.

ADNOC Gas CEO Fatema Al Nuaimi said that the company’s record-breaking fourth quarter results demonstrated their ability to deliver on its ambitious growth strategy as they seek to realise EBITDA growth of over 40% by 2029.

She added: “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.”

Full Year Dividend

For the financial year 2024, ADNOC Gas confirms its dividend of $3.412 billion, of which an interim cash dividend of $1.706 billion was paid in September 2024 and an equal amount is expected to be paid in April 2025, pending approval at the Annual General Meeting (AGM).

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