MEOG: ADNOC Gas gives Q2 update

ADNOC Gas has reported financial results for Q2, exceeding market expectations with an adjusted net income of $1.19bn, marking a 21% year-on-year increase and driving a sizeable increase in dividends.

The company also saw revenues rise to $6.08bn, a 13% improvement compared to the same period last year, driven by robust domestic demand and industrial growth within the UAE.

ADNOC Gas plays a critical role in meeting the UAE’s energy needs, supplying over 60% of the country’s gas demand.

This has positioned the company as a key player in supporting the nation’s industrial sectors, particularly petrochemicals, which have seen substantial growth. The strong domestic demand contributed significantly to the quarter’s revenue gains.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) also showed notable improvement, reaching $2.1bn – an increase of 18% y/y. This growth outpaced revenue increases and resulted in an EBITDA margin of 34%. The robust performance is attributed to high sales demand and the strategic advantages of ADNOC Gas’ long-term gas supply and purchase agreements.