Adnoc Gas awards $8.2bn in contracts to spur growth as earnings beat estimate

Adnoc Gas reported a second-quarter net profit of $664.65 million, surpassing estimates, as it restored processing capacity at its Habshan Complex to 85 percent ahead of schedule. The company invested $8.2 billion to spur future growth. Total comprehensive income for the quarter reached $664.65 million, exceeding the company's $400 million to $600 million range.

CEO Fatema Al Nuaimi attributed the positive results to recovering the Habshan plant ahead of plan and continued investment in the future. Despite challenges from external disruptions, Adnoc Gas maintained healthy revenue due to domestic gas demand in the Arab world's second-largest economy.

For the third quarter, Adnoc Gas anticipates net income in the range of $600 million to $800 million, assuming disruptions in the Strait of Hormuz persist. CFO Peter van Driel stated that if maritime operations are restored during the fourth quarter, the company expects full-year net income to range from $3.5 billion to $4 billion.

However, uncertainties remain, and Adnoc Gas remains cautious about the future. The company's operations were affected by Iran's attacks on energy infrastructure across the Middle East, causing significant damage to Habshan in April.

Adnoc Gas is exploring alternatives to circumvent the strait, including the expansion of the West-East crude oil pipeline. The UAE plans to complete the 48-inch pipeline by 2027, which could double export capacity to 1.5 million barrels per day. CEO Fatema Al Nuaimi emphasized the need to de-risk the company's operations and look into alternative routes, acknowledging that uncertainties persist.

Despite the challenges, Adnoc Gas continues to execute its long-term growth strategy, announcing final investment decisions and engineering, procurement, and construction contracts for Phases 2 and 3 of the Rich Gas Development.