ADNOC Gas announced today record earnings for the full year 2024 of $5 billion, and its highest quarterly income of $1.38 billion since its IPO. For the full year, adjusted net income increased by an impressive 13 percent to $5 billion. The company attributed the strong performance to robust demand for domestic gas which supported volume growth and improved pricing.
ADNOC Gas’s total sales volumes in 2024 increased by 2 percent to 3,616 million MMBTU. This increase in volume was enabled by a 13 percent increase in the ADNOC LNG (ALNG) joint venture contribution.
“ADNOC Gas’ evolution into one of the highest income generating companies listed in the UAE, is a testament to our commitment to creating long-term and sustainable value for our shareholders, as we invest in growth projects to meet the growing demand for lower carbon Domestic Gas, LPG and LNG, both locally and globally as key fuels in the energy transformation,” stated Fatema Al Nuaimi, CEO of ADNOC Gas.
Revenues rise to $24.43 billion
ADNOC Gas’s adjusted revenues increased by 7 percent in 2024 to $24.43 billion driven by a 2 percent increase in sales volume and improved pricing. The company’s strong top-line performance for 2024 also translated into a strong EBITDA growth of 14 percent to $8.65 billion with a high, stable margin of 35 percent.
In addition, free cash flow for the period reached an impressive $4.58 billion, reflecting the company’s strong cash conversion capabilities.
Q4 net income hits $1.381 billion
In Q4 of 2024, ADNOC Gas delivered adjusted revenues of $6.06 billion, EBITDA of $2.28 billion and net income of $1.381 billion. The robust improvement was due to several factors including a richer mix of gas, producing more liquids and improved commercial terms in the domestic market.
“Our record-breaking fourth quarter results demonstrate our ability to deliver on our ambitious growth strategy as we seek to realize EBITDA growth of over 40 percent by 2029,” added Al Nuaimi.
ADNOC Gas targets 40 percent EBITDA growth by 2029
The company’s stellar fourth-quarter results also reflect the ongoing disciplined execution of its updated strategy that was unveiled after Q3 2024. The plan targets an increase of over 40 percent in EBITDA by 2029 and entails capital expenditure of up to $15 billion for the 2025-2029 period. This includes the acquisition of ADNOC’s 60 percent share of the lower-carbon intensity Ruwais liquefied natural gas (LNG) project at cost in H2 2028.
Read: ADNOC achieves record low carbon intensity at Shah Field enabled by AI
ADNOC Gas confirms $3.412 billion dividend
For the financial year 2024, ADNOC Gas confirmed its dividend of $3.412 billion, of which an interim cash dividend of $1.706 billion was paid in September 2024. ADNOC Gas also expects to pay an additional $1.706 billion in April 2025, pending approval at the Annual General Meeting (AGM).
The final dividend for 2024 falls in line with the company’s robust policy to increase the annual dividend by 5 percent annually and reflects the company’s strong free cash flow, which exceeds the dividend commitment by over $1 billion.
