Adnoc Gas has raised its forecast for its 2026 full-year net income to at least $4 billion, after the company's third quarter earnings improved on the previous quarter despite the disruption caused by the Iran war.
Net income for the three months to the end of September reached $1.33 billion, flat on an annual basis and up about double from $664.6 million in the second quarter, Adnoc Gas said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue for the period fell by nearly 10 per cent annually to $4.38 billion.
"Although market conditions improved during the third quarter, ongoing disruption to maritime movements through the Strait of Hormuz continued to create a challenging operating environment," the company said.
Prolonged maritime disruption in the strait continued to curtail exports of liquefied petroleum gas, naphtha and liquefied natural gas. "Our operational strength and commercial agility enabled us to safely and reliably meet domestic and international demand and drive strong financial results despite continued challenging external conditions," said Fatema Al Nuaimi, chief executive of Adnoc Gas.
Adnoc Gas raised its full-year 2026 net income guidance to at least $4 billion, compared with a estimated range of $3.5 billion to $4 billion in the previous quarter. "Our outlook remains subject to developments in regional maritime conditions, which we continue to monitor closely," it said.
Domestic gas sales volumes during the quarter declined by 19 per cent annually to 513 trillion British thermal units (Tbtu), "reflecting reduced reinjection gas and ethane offtake", the statement said. Sales gas volumes remained broadly flat year-on-year.
Adnoc Gas supplies about 60 per cent of the UAE’s gas needs as well as customers in more than 20 countries.
While the sales volumes of export and traded liquids were down 28 per cent annually, they were up 69 per cent on a quarterly basis, mainly driven by improved shipping activities, Adnoc Gas said.
Despite higher gas and naptha prices, the "continued disruption constrained the company's ability to lift and export its liquids and LNG cargoes, limiting its capacity to fully capture these higher market prices during the quarter", it added.
Oil and gas prices surged globally after the Iran war began on February 28, with the Strait of Hormuz effectively closed. The waterway accounted for about 20 per cent of all oil and gas flows before the conflict erupted.
Iran also launched attacks on energy infrastructure across the Middle East in response to US-Israeli strikes.
Operations at Habshan, one of the world’s largest gas processing sites operated by Adnoc Gas in the UAE, 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 the third quarter, restoration works at the damaged Habshan complex "progressed in line with plan", Adnoc Gas said.
The company said it "remains on track" to restore full capacity by the second quarter of 2027.
Long-term strategy
Adnoc Gas has continued to execute its long-term growth strategy this year, despite operational constraints.
The company awarded $8.2 billion in engineering, procurement and construction contracts, part of its largest capital investment, for the second and third phases of the Rich Gas Development project, the company said in August. These contracts build on Phase 1, announced in June 2025.
The Rich Gas Development is a multi-phase, $13.2 billion capital investment programme by Adnoc Gas to expand gas processing and liquid recovery infrastructure across the UAE.
It is also working on three other key projects – Ruwais LNG, Maximizing ethane recovery and monetisation and Estidama – which together are expected to generate $13.4 billion in In-Country Value.
Its expansion programme is aimed at boosting Ebitda (earnings before interest, taxes, depreciation and amortisation) growth of 60 per cent by 2030 compared with 2023, with about $28 billion of investment planned between 2026 and 2030.
Adnoc Gas also said last week that it is planning to supply natural gas to the Northern Emirates as part of an agreement with Etihad Water and Electricity for new power generation. The move is aimed at exploring future natural gas supply arrangements for new power generation capacity across the Northern Emirates.
Also last week, the company signed a five-year agreement to supply up to 1.6 million tonnes of LNG to France's TotalEnergies.
