ADNOC Gas reports strong financial results and growth investments in 2023
ABU DHABI, UAE: ADNOC Gas, a world-class integrated gas processing company, announced its consolidated financial results for Q4 2023 and FY 2023, showing a strong performance driven by volume growth and a positive pricing environment.
The Company’s Q4 2023 revenue increased by 7% year-on-year to $6.3 billion, processed volumes rose to 912 TBTU, enough to supply 6 million homes with energy for a year, up 5% compared to the same period in the previous year. As a result, Q4 2023 EBITDA increased by 15% year-on-year to $2.2 billion while net income for the quarter rose 24% year-on-year to $1.3 billion.
The Company’s net income for FY 2023 was $4.7 billion, significantly above market expectations.
Dr. Ahmed Alebri, CEO of ADNOC Gas, commented: “Our strong performance is a testament to the resilience of the Company and our ability to maintain strong margins through the commodity cycle. In 2023, we made substantial investments to drive our growth strategy, awarding EPC contracts totaling $4.9 billion, paving the way for significant capacity expansion. Further, we signed new LNG supply agreements valued between $9 billion and $12 billion, capitalizing on the growing global demand for LNG as a transitional fuel.”
In 2023, ADNOC Gas committed substantial investments that will drive its long-term and sustainable growth. The Company awarded a $3.6 billion contract for commissioning new capacity and expanding its gas processing facilities. Additionally, $1.3 billion was allocated for contracts to expand the Company’s natural gas pipeline network as part of the ESTIDAMA program, aimed at enabling the supply of higher volumes of natural gas to its customers in the Northern Emirates.
ADNOC Gas is fully committed to supporting ADNOC Group with its target of delivering 25% emissions intensity reductions by 2030 and ADNOC’s target to achieve Net-Zero by 2045. To enable this bold ambition, the Company awarded a $615 million contract for one of the MENA region’s largest integrated carbon capture projects, at the Habshan gas processing plant. The project, which ADNOC Gas will operate on behalf of ADNOC, provides the capacity to capture and store 1.5 million tons of carbon dioxide per annum.
For the financial year 2023, ADNOC Gas confirms its dividend of $3.25 billion, of which an inaugural interim cash dividend of $1.625 billion was paid in December 2023 and a further $1.625 billion will be paid in the second quarter of 2024. Following the dividend payment for 2023, the Company expects annual dividend growth of 5% per share over the next four years, underscoring the strength and visibility of ADNOC Gas’ cash flow generation.
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