ADNOC Gas achieved its highest quarterly profit ever in the third quarter of this year, recording net income of $1.34 billion, an 8% increase compared to the same quarter last year. On an annual basis, the company's profits for the first nine months of the year rose by 10% to nearly $4 billion, reflecting the strength of its business model and its ability to withstand global market volatility.
Speaking to the Business with Lubna program on Sky News Arabia, the company’s CEO, Fatima Al Nuaimi, said that this record financial performance was the result of several key factors, including high operational efficiency of 98–99 percent across all factories, in addition to the diversity of markets and sectors served by the company, with a pivotal role for the local market, which witnessed growth in volumes and profit margins.
Strong financial performance despite lower oil prices
Al-Nuaimi confirmed that ADNOC Gas's net profit for the first nine months of the year increased by 10.3 percent despite the drop in oil prices to around $12 per barrel. She explained that the company's ability to achieve this increase reflects the resilience of ADNOC Gas's model to market fluctuations, which is due to:
The diversity of markets and targeted sectors, as the company does not rely on just one market.
Two-thirds of the production is directed towards the local market, with long-term contracts and stable prices that are not affected by global oil or gas prices.
The company makes a major contribution to meeting the needs of UAE industries, covering 100 percent of the industries' needs and 60 percent of the total demand for gas in the country.
The company’s revenues from the beginning of the year until the end of the third quarter amounted to approximately $14.2 billion (AED 14.65 billion), reflecting the company’s success in combining the local market and global markets to achieve financial stability and sustainable growth.
Growth and regional expansion strategies
Al Nuaimi explained that ADNOC’s gas strategy is based on sustainable growth and regional expansion, especially in the Asian market, where gas demand is expected to increase by one and a half times by 2030. She affirmed that the company is qualified to meet this demand through a 30 percent increase in production capacity and current investments of up to $20 billion in tangible projects, not just plans on paper.
Among the major projects:
The IGD e2 project, which connects the company's marine and land operations, was inaugurated last month.
The final investment decision for the Rich Gas Development project, which focuses on rich gas, will be made mid-year.
Upgrading the ship reception platform on Das Island to accommodate larger, more modern and efficient vessels is a small-scale project but has a significant impact on operational processes.
Al-Nuaimi confirmed that these projects will contribute to enhancing the company’s market value and increasing operating revenues by 40 percent compared to 2023, reflecting the company’s commitment to achieving sustainable growth and tangible benefits for investors.
