Adnoc’s gas and LNG unit, Adnoc Gas, reported higher income and revenue in the fourth quarter of 2023 due to higher volumes and prices.
UAE’s Adnoc Gas reported revenue of $6.3 billion in the fourth quarter, up by 7 percent versus the pro forma adjusted revenue of $5.8 billion in the same period in 2022 and rise of 8 percent compared to the prior quarter.
Moreover, Adnoc Gas said its processed volumes rose to 912 Trillion British Thermal Unit (TBTU), enough to supply 6 million homes with energy for a period of 1 year, up 5 percent compared to the same period in the previous year.
As a result, Q4 2023 Ebitda increased by 15 percent year-on-year to $2.21 billion while net income for the quarter rose 24 percent year-on-year to $1.34 billion.
Net income rose 21 percent compared to the prior quarter.
Adnoc Gas attributed the “strong” financial performance in Q4 2023 to “substantial” volume growth and a “positive” pricing environment.
During the period from December 8 2022 (date of incorporation) to December 31, 2023, revenue decreased by 12 percent to $22.73 ,billion, while net income dropped by 2 percent to $4.72 billion.
Adnoc Gas said its FY 2023 net income was “significantly above market expectations”.
For the financial year 2023, Adnoc Gas confirmed its dividend of $3.25 billion, of which an inaugural interim cash dividend of $1.625 billion was paid in December 2023 and a further $1.625 billion will be paid in the second quarter of 2024.
“Adnoc Gas delivered a strong set of results in 2023, overcoming a challenging market environment in the first half of the year,” Ahmed Alebri, CEO of Adnoc Gas, said.
“In 2023, we made substantial investments to drive our growth strategy, awarding EPC contracts totaling $4.9 billion, paving the way for significant capacity expansion. Further, Adnoc Gas sustained its strong sales momentum during the year, signing new LNG supply agreements valued between $9 billion and $12 billion, capitalizing on the growing global demand for LNG as a transitional fuel,” he said.
Adnoc launched Adnoc Gas on January 1 as it looks to further expand its international presence.
Last year, Adnoc Gas signed LNG supply deals with France’s TotalEnergies, India’s top state oil refiner Indian Oil, Japan Petroleum Exploration (Japex), state-owned PetroChina, and Jera Global Markets.
The firm also signed in January this year a long-term deal with India’s largest gas utility GAIL.
Adnoc owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.
Besides this terminal, Adnoc is also working on the second LNG export plant in Al Ruwais with a capacity of 9.6 mtpa.
In December, the company signed its first LNG supply deal for this terminal with China’s ENN.
