Adnoc Gas reported a 7 per cent year-on-year increase in net income for the first quarter of 2025, driven by strong domestic demand for gas.
The company's net profit for the three months to the end of March rose to $1.27 billion as continued economic growth in the Arab world's second largest economy fuelled gas demand and lifted sales volumes, it said in a statement on Monday.
Revenue for the reporting period climbed 1 per cent on an annual basis to $6.1 billion.
The quarterly earnings were “supported by our resilient business model in a lower oil price market, which significantly exceeded market expectations,” said Fatema Al Nuaimi, chief executive of Adnoc Gas.
“These results come on the back of successful supply agreements and the optimisation of our ongoing shutdown programme designed to power our continued growth.”
The company's earnings before interest, taxes, depreciation and amortisation (Ebitda) also climbed 4 per cent year-on-year to $2.16 billion, with a higher Ebitda margin of 35.4 per cent. Its free cash flow for the quarter reached $1.21 billion − 6 per cent higher on the same period in 2024.
During the first quarter of this year, Adnoc Gas increased its capital expenditure by 43 per cent on an annual basis to expand the business and achieve its long-term Ebitda growth target.
“Looking ahead, we will use the strength of our balance sheet to invest through the cycle as we seek to realise Ebitda growth of over 40 per cent between 2023 and 2029,” Ms Al Nuaimi said.
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The company expects to take a final investment decision on its Rich Gas Development project in 2025, she added.
Adnoc Gas, a subsidiary of the state-owned Abu Dhabi National Oil Company, is eligible for potential inclusion in the Morgan Stanley Capital International and Financial Times Stock Exchange emerging market indexes as early as June and September respectively, it said.
Adnoc sold part of its stake in the subsidiary to institutional investors as it looks to improve liquidity and raise capital. The recently completed offering of 3.1 billion shares in Adnoc Gas increased the free float by 4 per cent to 9 per cent.
Adnoc Gas, which has access to 95 per cent of the UAE's natural gas reserves, is looking to boost exports of products such as liquefied natural gas, liquefied petroleum gas and naphtha.
Customers of Adnoc Gas in the Emirates include utilities and industrial companies, which are supplied commercial quantities through an extensive network of pipelines.
