Adnoc Gas second-quarter net income falls amid war disruption

Adnoc Gas, the state-controlled energy company of the United Arab Emirates, reported a decline in net income for the second quarter amid ongoing disruptions caused by regional conflicts. Despite this downturn, the company managed to beat analyst estimates, with its net profit reaching $664.65 million for the three months ending in June.

This figure exceeded the initially projected range of $400 million to $600 million. The improvement in profit was attributed to the partial restoration of processing capacity at the Habshan Complex, which reached 85% of its original processing capacity ahead of schedule.

However, the company's revenue took a significant hit, falling by more than 33% to $3.11 billion. This decline was primarily due to disruptions in export operations and Iran's strikes on the UAE's energy infrastructure. The attacks on energy sites across the Middle East, including the sabotage of energy facilities in Qatar, resulted in a substantial reduction in the country's LNG export capacity. Additionally, attacks on tankers in the Strait of Hormuz further impacted energy export operations across the Gulf region.

In response to the security threats, Adnoc Gas prioritized safety and swiftly restored gas supply at the Habshan Complex to 85% of its original capacity, surpassing the year-end target set in May. The company has also continued to execute its long-term growth strategy, awarding $8.2 billion in engineering, procurement, and construction contracts for the second and third phases of the Rich Gas Development Project.

These investments are expected to significantly expand Adnoc Gas's processing and export capacity, positioning the company at the forefront of the UAE's energy future.