Adnoc Gas's second-quarter net profit beat estimates as the state-controlled Adnoc subsidiary restored the processing capacity at its Habshan Complex to 85 per cent ahead of schedule.
Total comprehensive income for three months to the end of June reached $664.65 million, ahead of the company's $400 million to $600 million guided range, “despite exceptional external disruption during the period”, the company said in a statement on Monday.
The quarterly profit, however, fell from the record $1.38 billion reported at the end of the second quarter a year earlier, dragged lower due to adverse market conditions amid Iran’s strikes on the UAE’s energy infrastructure and attacks on tankers in the Strait of Hormuz.
Revenue for the reporting period fell by more than 33 per cent to $3.11 billion, down from $4.65 billion in the three-month period last year.
While export operations suffered due to war disruptions, domestic gas demand in the Arab world's second-largest economy helped Adnoc maintain healthy revenue.
Iran launched attacks on energy infrastructure across the Middle East in response to US-Israeli strikes that began on February 28. Energy sites across the region, including in the UAE, Saudi Arabia, Iraq, Bahrain and Qatar, were attacked, with missile strikes on Qatar knocking out about 17 per cent of its LNG export capacity.
Tankers carrying oil and gas through the Strait of Hormuz, through which about 20 per cent of the world's oil and gas passed before the war, have also come under attack, hitting energy export operations across the Gulf region.
Operations at Habshan, one of the world’s largest gas processing sites, were suspended in early April after it was damaged. One person was killed and four injured after falling shrapnel from intercepted Iranian strikes caused two fires at the complex on April 3. The company reported "significant damage" at the time. The site in Abu Dhabi had another incident on April 8.
In May, the company said it expected to restore 80 per cent of processing capacity at the Habshan complex by the end of the year.
On Monday, Adnoc Gas said it responded swiftly to the security-related incidents at the Habshan site, prioritising safety and minimising disruptions to customers.
“The company has concluded its technical assessment of the impact from these incidents and recovery has progressed ahead of schedule, with gas supply already restored to 85 per cent, surpassing the year-end target set in May,” it said.
Continued growth
Despite operational constraints, Adnoc Gas has continued to execute its long-term growth strategy this year. It has taken final investment decisions and awarded engineering, procurement and construction contracts for Phases 2 and 3 of its Rich Gas Development, it said.
"This is a defining moment for Adnoc Gas. With the final investment decision and contract awards for the Rich Gas Development Project, we are not only accelerating one of the world's largest gas-processing growth programmes,” Fatema Al Nuaimi, chief executive of Adnoc Gas, said.
"These strategic investments will significantly expand our natural gas processing and export capacity … and position Adnoc Gas at the heart of the UAE's energy future.”
Adnoc Gas has awarded $8.2 billion in EPC contracts for Phases 2 and 3 of the rich gas project – $3.9 billion for Phase 2, and $4.3 billion for Phase 3. These contracts build on Phase 1, announced in June 2025, expand key processing units to increase throughput and improve operational efficiency across multiple gas assets.
