ADNOC Gas Q2 profit beats guidance on strong domestic gas margins

ADNOC Gas reported a stronger-than-expected net income of $665 million for the second quarter, surpassing its previously announced range of $400 million to $600 million. The company's performance in the domestic gas business, characterized by robust margins, contributed to this impressive result, despite challenging operating conditions.

ADNOC Gas committed to final investment decisions and awarded engineering, procurement, and construction contracts for the next stages of its Rich Gas Development project. These contracts, valued at $8.2 billion, were awarded to Wison Engineering for Phase 2 and Tecnimont for Phase 3. Phase 2 will include a new natural gas processing train at the Habshan facility, while Phase 3 will add a natural gas liquids fractionation train at Ruwais.

The company now expects to invest around $28 billion between 2026 and 2030 to meet its ambitious growth plan, which includes four megaprojects and aims for a 60% increase in EBITDA by 2030. ADNOC Gas is also spearheading technological advancements within its operations, implementing AI and robotics technologies to reduce inspection costs by up to 75% and expedite certain inspections by up to 15 times.

The company distributed a quarterly dividend of $940 million, reflecting its commitment to annual dividend growth of 5% through 2030, and reaffirmed its status as the largest dividend payer on the Abu Dhabi Securities Exchange.