Adnoc Gas second-quarter net income falls amid war disruption

Adnoc Gas, a state-controlled entity, reported a second-quarter net profit that fell short of the company's guidance, while still exceeding expectations amid ongoing disruptions due to regional conflicts. The state-owned company's net income for Q2 2025 amounted to $664.65 million, surpassing analysts' estimates despite an 85% reduction in revenue compared to the same period last year, which fell by more than 33% to $3.11 billion.

The decline was primarily attributed to war-related disruptions and attacks on energy infrastructure across the Middle East, particularly in the UAE. Adnoc Gas faced the cessation of operations at its Habshan Complex, one of the world's largest gas processing sites, following damage sustained in early April. However, the company swiftly responded to the security incidents and managed to restore gas supply to 85% of capacity, surpassing the year-end target set in May.

Despite these challenges, Adnoc Gas has maintained healthy revenue levels due to robust domestic demand within the Arab world's second-largest economy. Moreover, the company has continued its long-term growth strategy, securing final investment decisions and engineering, procurement, and construction contracts for Phases 2 and 3 of its Rich Gas Development project.

With estimated investments totaling $8.2 billion for these phases, Adnoc Gas is set to significantly expand its natural gas processing and export capacity, positioning itself at the forefront of the UAE's energy future.