Abu Dhabi's Adnoc Gas has reported a 16 per cent annual jump in its second-quarter profit, despite a lower oil price environment, capitalising on operational and cost efficiencies.
Net profit in the three months ended June rose to a record $1.39 billion, the Abu Dhabi National Oil Company unit said on Wednesday in a filing to the Abu Dhabi Securities Exchange, where its shares trade.
Revenue for the period was down more than 4 per cent year-on-year to $4.66 billion, while earnings before interest, taxes, depreciation and amortisation – a key measure of profitability – climbed 8 per cent to $2.26 billion.
The company's highest quarterly profit was “fuelled by our strong local market business and improved operational efficiency … we remain well-positioned for long-term growth”, said chief executive Fatema Al Nuaimi.
Adnoc Gas's Ebitda margin of 36.6 per cent showed its "resilient business model, coupled with effective optimisation strategies ... underscoring our adaptability in the current price environment", the company said in the bourse filing.
For the first half of 2025, net profit increased by 11.3 per cent annually to $2.65 billion, while revenue inched down less than 1 per cent to $9.33 billion.
Ebitda for the first half hit $4.42 billion, a 6 per cent year-on-year rise from the same period in 2024.
The Adnoc Gas board of directors approved an interim dividend of $1.792 billion, a 5 per cent year-on-year increase, which will be distributed in September, it said.
"With healthy cashflows and robust margins, we are well on our way to achieving our ambition of over 40 per cent Ebitda growth between 2023 and 2029," Ms Al Nuaimi said.
Oil price volatility
Oil prices have trended upwards since May, peaking on June 19 after Israel attacked Iran, but they have fallen since. That, among other geopolitical tensions, has added to market volatility.
On Monday, oil prices dropped after Opec+ agreed to another large output rise in September.
Brent, the benchmark for two thirds of the world's oil, was up 1.06 per cent to $68.36 a barrel at 11.19am UAE time on Wednesday. West Texas Intermediate, the gauge that tracks US crude, was trading 1.04 per cent higher at $65.84 a barrel.
Brent and WTI are now down about 9 per cent in 2025. On a year-on-year basis, the benchmarks have retreated more than 13 per cent.
However, Adnoc Gas said its second-quarter results show that the company’s product portfolio is "resilient to oil price volatility".
The company's capital expenditure of about $1.22 billion in the first half of the year was primarily allocated to growth projects, with $217 million allocated to sustaining assets and supporting turnaround activities.
These "are crucial for extending their technical life and ensuring operational excellence", Adnoc Gas said.
Adnoc Gas is a key player in parent company Adnoc’s strategy to enhance its natural gas production capacity and expand global liquefied natural gas exports. It supplies about 60 per cent of the UAE’s gas sales needs and supplies end-customers in more than 20 countries.
The company, which has access to 95 per cent of the UAE’s natural gas reserves, is looking to boost exports of products such as LNG, liquefied petroleum gas and naphtha.
Alongside other Adnoc units, Adnoc Gas has been boosting investments to expand its geographical and operational reach.
Growth strategy
On Monday, Adnoc Gas signed a 10-year preliminary agreement with Hindustan Petroleum Corporation (HPCL) to supply LNG to the Indian fuel retailer on the back of strong demand for low-carbon fuel.
That builds on Adnoc's strategy to build its customer base after a series of LNG agreements in the past two years.
In February, Adnoc Gas signed a 14-year deal to supply up to 1.2 million tonnes per annum of LNG to state-backed Indian Oil. The agreement is valued between $7 billion and $9 billion, Adnoc Gas said at the time, adding that Indian Oil is set to become the largest buyer of LNG from Adnoc by 2029.
The Abu Dhabi company signed another contract with Indian Oil in September last year, in which it signed a preliminary 15-year agreement with the company to supply 1 million tonnes a year of LNG to India.
In April last year, Adnoc Gas said it plans to invest more than $13 billion until 2029 to pursue domestic and international growth opportunities as it aims to expand its LNG production capacity.
The company aims to more than double its LNG output capacity by 2028 through the strategic acquisition of the new Ruwais LNG plant from parent company Adnoc and potentially target assets in Europe, India, China and South-East Asia, it said at the time.
