ADNOC Fuels Growth

ADNOC Fuels Growth

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  • Adnoc Gas, the integrated gas processing unit of Adnoc, announced a significant 21% year-on-year increase in its first-quarter adjusted net income, fueled by revenue growth driven by higher sales volumes of natural gas. For the three months ending March, adjusted net income reached $1.18 billion, according to a statement released on Tuesday to the Abu Dhabi Securities Exchange, where Adnoc Gas shares are traded. This figure excludes non-recurring deferred tax impact recorded by the company in the first quarter of the previous year.

  • Revenue experienced a robust 15% year-on-year surge, reaching $6 billion, propelled by a notable uptick in demand within the UAE, which witnessed an overall sales volume increase of 14% year-on-year, as stated by the company. Despite the impressive revenue growth, profits for the period declined by approximately 7% annually to $1.18 billion due to higher costs and expenses. However, profits before interest, taxes, depreciation, and amortisation (EBITDA) for the first quarter surged by 17% to $2 billion, indicating strong profitability.

Why it matters

Ahmed Alebri, CEO of Adnoc Gas, emphasized the company's robust cash flow generation, which increased by 47% year-on-year to $1,183 million, enabling a planned 5% growth in the annual dividend to $3.41 billion in 2024, in alignment with its dividend policy.

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