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Adnoc Gas Doubles Down on Growth Projects Amid Lower First-half Profit, Revenue

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Adnoc Gas Doubles Down on Growth Projects Amid Lower First-half Profit, Revenue

Adnoc Gas (ADX:ADNOCGAS) is doubling down on profitability growth and expansion efforts even as its first-half profit and revenue declined year over year amid the regional conflict in the Middle East.

The United Arab Emirates-based integrated gas processing company said Monday that profit attributable to owners for the six months ended June 30 stood at $1.74 billion, down from $2.65 billion a year before, while total revenue fell to $7.15 billion from $9.33 billion. Including proportionate consolidation of ADNOC Gas companies joint ventures, revenue amounted to $8.63 billion.

For the second quarter, attributable profit dropped on an annual basis to $664.6 million from $1.39 billion, with the company noting that it delivered a "resilient" net income that came in higher than its guidance range of $400 million to $600 million.

The results were weighed down by lower domestic gas sales volume, largely driven by the shipping disruption in the Strait of Hormuz due to the conflict.

Looking forward, Adnoc Gas expects net income to come in between $600 million and $800 million in the third quarter, assuming continued disruption in maritime routes through the Strait of Hormuz. For full-year 2026, the company forecasts net income in the range of $3.5 billion to $4.0 billion.

In terms of shareholder returns, the board approved a dividend of 0.045 Emirati dirham per share for the second quarter. The company also reaffirmed its progressive dividend policy, aiming for an annual dividend growth of 5% through 2030.

Meanwhile, Adnoc Gas announced that it took on final investment decisions on its on rich gas development project. The company awarded a total of $8.2 billion in engineering, procurement and construction contracts for the second and third phases to expand key processing units in a bid to increase throughput and improve operational efficiency.

"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 programs - we are raising our ambition, targeting 60% EBITDA growth by 2030," Chief Executive Officer Fatema Al Nuaimi said in an earnings release. "These strategic investments will significantly expand our natural gas processing and export capacity, unlock lasting value for our shareholders, and position ADNOC Gas at the heart of the UAE's energy future."

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