Yesterday, Tuesday, the UAE Gas Company ADNOC announced its financial results for the three and nine months ending on September 30, 2023.
The company's revenues in the third quarter of 2023 amounted to about $5.8 billion, which represents an 8 percent growth compared to the second quarter of 2023, due to the improved price environment and higher sales volume.
Despite the prevailing market conditions, the company maintained stable margins in line with its policies and previous periods, according to the company’s statement.
Revenues in the third quarter of 2023 recorded an improvement, before financing costs, taxes, depreciation and deductions, to reach $1.863 billion, an increase of 5 percent compared to the second quarter of 2023, while net income for the quarter increased by 13 percent on a quarterly basis to reach $1.116 billion.
These results confirm the company's flexibility and its ability to take advantage of opportunities for improvement and growth, while the net income recorded for nine months of $3.375 billion reflects a lower pricing environment compared to the same period in 2022, according to the company's statement.
Ahmed Al Abri, CEO of ADNOC Gas, commented: The company achieved strong financial results for the first nine months of the year despite a lower price environment compared to 2022. ADNOC Gas maintained stable profit margins in the third quarter before accounting for financing costs, taxes, depreciation and deductions. And net income, an indication of our flexibility and ability to achieve meaningful returns despite market fluctuations.
He added: We have made significant progress in implementing our growth strategy through investments amounting to $5.6 billion, through contracts awarded in the first nine months of 2023. These contracts included an engineering, procurement and construction contract to build carbon capture units, which constitutes a milestone in our quest to decarbonize. of our operations and is in line with ADNOC’s ambition to achieve net zero emissions by 2045.
In the first nine months of 2023, ADNOC Gas concluded several new deals to supply liquefied natural gas with a total value ranging between $9-12 billion, according to the statement.
ADNOC Gas awarded contracts totaling $5.6 billion in 2023, including a contract worth $3.6 billion to establish and operate new units and expand gas processing facilities in the United Arab Emirates to ensure optimal utilization of the Ruwais Industrial Complex.
In addition, the company was awarded another contract worth $615 million for a carbon capture project. The company also sought to expand its natural gas pipeline network through a contract worth $1.34 billion in the second quarter of this year, as part of the Estidama program, which aims to supply... Larger quantities of natural gas to its customers in the Northern Emirates.
In its effort to benefit from the growing global demand for natural gas, the company signed LNG supply deals worth between $9-12 billion this year.
These agreements, which were signed with international companies including the Japan Petroleum Exploration Company Limited, the Indian Oil Company Limited, PetroChina Company Limited, and JERA Global Markets Company, enhance ADNOC Gas’s position as a stable and reliable global supplier of liquefied natural gas.
ADNOC Gas announced that the company's Board of Directors has approved the distribution of interim cash dividends (interim dividends) worth $1.625 billion (5.968 billion dirhams) on December 14, 2023, equivalent to 7.776 fils per share.
According to the company's statement, interim dividends will be paid to shareholders who owned ADNOC Gas shares on the registration date, corresponding to November 24, 2023.
For the fiscal year 2023, ADNOC Gas expects to distribute annual profits worth $3.25 billion, $1.625 billion on December 14, 2023, as interim opening cash dividends, and another $1.625 billion in the second quarter of 2024, and the company expects growth in dividends. Annual growth of 5 percent per share over the next four years, which confirms the strength and clarity of ADNOC Gas’s future cash flows.
