Energy, Oil & Gas

ADNOC Gas reports $1.34 bn Q3 net income, doubles quarterly profit

ABU DHABI
ADNOC Gas reports $1.34 bn Q3 net income, doubles quarterly profit

ADNOC Gas reported net income of $1.34 billion for the third quarter of 2026, more than doubling its $665 million profit in the previous quarter, driven by strong performance across its domestic gas, liquefied natural gas (LNG), export-traded liquids (ETL) and sulphur businesses.

The UAE-based company said its integrated portfolio, operational resilience and commercial agility supported the strong results despite challenging external conditions. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 70% quarter-on-quarter to $2.03 billion.

Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said: “Our third-quarter results deliver a compelling message: strong execution across the business has been the key driver of our renewed momentum and excellent results. 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. It is a clear demonstration of the value of our integrated business model, the disciplined execution of our teams and our commitment to leveraging and adopting advanced technologies across the business.”

She added: “We continue to deliver on our dividend commitment to shareholders and invest in one of the industry’s largest gas growth programs. We are uniquely positioned to create lasting value for the UAE, our customers and for our investors.”

Domestic and International Businesses Drive Earnings

ADNOC Gas' domestic gas business continued to provide a stable earnings base, with UAE sales rising 20% quarter-on-quarter on resilient demand. Strong margins also supported a 28% increase in domestic gas EBITDA.

The company's international product sales business recorded a 106% quarter-on-quarter increase in EBITDA, reflecting stronger commercial execution and operational performance. Sulphur sales also contributed to earnings growth, with EBITDA climbing 249% over the same period.

$940 Million Dividend Approved

ADNOC Gas' Board of Directors approved a quarterly dividend of $940 million, representing a 5% increase year-on-year. The payment is scheduled for December 2026 and is consistent with the company's commitment to increasing annual dividends by 5% through 2030.

For the first nine months of 2026, the company generated $3.82 billion in operating cash flow, comfortably covering its $2.82 billion in year-to-date dividend payments by 1.3 times.

The company said its strong cash generation and balance sheet provide sufficient financial capacity to fund its long-term expansion programme while maintaining shareholder returns.

Its full-year 2026 dividend commitment of 18 fils per share represents a yield of 5.34%, based on the closing share price on November 9, 2026. ADNOC Gas remains the largest dividend payer on the Abu Dhabi Securities Exchange (ADX).

Full-Year Profit Guidance Raised to $4 Billion

Following its third-quarter performance, ADNOC Gas raised its full-year 2026 net income guidance to at least $4 billion.

The company noted that market conditions improved during the quarter, although disruptions to maritime movements through the Strait of Hormuz continued to present operational challenges.

ADNOC Gas said it worked closely with customers, contractors and partners to minimise the impact through proactive inventory, logistics and supply-chain management. However, its updated outlook remains subject to developments in regional maritime conditions.

$28 Billion Growth Investment Planned Through 2030

ADNOC Gas is progressing one of the energy industry's largest gas expansion programmes, comprising four major projects: Rich Gas Development (RGD), Ruwais LNG, Maximizing Ethane Recovery and Monetization (MERAM), and Estidama.

Together, the projects are expected to generate $13.4 billion in In-Country Value (ICV), supporting the UAE's industrial development and economic diversification objectives.

The expansion programme underpins the company's target of increasing EBITDA by 60% by 2030 compared with 2023, supported by approximately $28 billion in planned investments between 2026 and 2030.

Several milestones were achieved across the projects during the third quarter. ADNOC Gas broke ground on Phase 3 of the RGD project, which will add a natural gas liquids fractionation train at Ruwais with an expected annual production capacity of more than eight million tonnes for export once completed.

At Ruwais LNG, the first two main refrigeration compressor trains were installed as construction progressed. Meanwhile, MERAM completed its first tie-in to existing processing facilities and introduced first gas to the project.

At Estidama, the first sales gas compression train was successfully started up and achieved operational readiness, marking another milestone ahead of commissioning.

Restoration work at the damaged Habshan complex also progressed in line with the company's plan, with ADNOC Gas maintaining its target of restoring full capacity by the second quarter of 2027.

Expanding AI and Autonomous Operations

Alongside its capacity expansion plans, ADNOC Gas is accelerating the adoption of artificial intelligence (AI) and robotics to improve operational efficiency, safety and reliability.

AI-powered control rooms at Bu Hasa and Taweelah, combined with autonomous inspection robots, are enhancing productivity and real-time decision-making while targeting significant cost savings.

The initiatives are expected to generate more than $900 million in value for the business by 2030 and support ADNOC Gas' ambition to become an AI-native company. -OGN/TradeArabia News Service