ADNOC Gas announced today its second-quarter financial results, revealing that its net income rose 21 percent year-on-year to $1.19 billion. The company‘s revenues reached $6.076 billion, marking a 13 percent annual increase as the UAE’s population rises and industrial growth progresses, contributing to stronger sales for the domestic gas business.
Notably, ADNOC Gas fulfils over 60 percent of the UAE’s gas demand and is a major player in fueling the development of key industrial sectors of the nation, including the growth of petrochemicals.
The company’s EBITDA growth outpaced revenue improvement during the second quarter, reaching $2.086 billion, an 18 percent annual increase. The company achieved an EBITDA margin of 34 percent due to high sales demand and the benefits of its long-term gas supply and purchase agreement.
“Our robust Q2 results clearly reflect our focus on growth, significantly strengthening revenues and profitability while continuing to maintain a healthy margin,” stated Dr. Ahmed Alebri, CEO of ADNOC Gas.
ADNOC Gas bolsters AI adoption
ADNOC Gas is a pioneer in artificial intelligence, digitalization and technology (AIDT) in the gas industry. The company installed one of the industry’s largest Real Time Optimizers (RTO) to help analyze operation parameters and recommend how to reduce energy consumption and emissions.
The company first piloted the solution in 2018 and rolled it out across 27 production trains. Overall, $1 billion in value has been realized through the deployment of AIDT in ADNOC Gas since 2016. A further $2 billion is expected over the next five years.
In July, the company announced that it will transfer ownership of the $2.4 billion gas pipeline extension project, ESTIDAMA, to ADNOC, significantly optimizing its capital efficiency.
Read: UAE’s ADNOC Drilling aims for $1.3 billion net profits and 148 rigs by 2026, says CFO
Ruwais LNG project’s investment decision
In June, ADNOC announced a final investment decision for the Ruwais Liquified Natural Gas (LNG) project. Moreover, it welcomed in July Mitsui & Co, Shell, bp, and TotalEnergies as equity partners, each taking a 10 percent stake.
ADNOC also awarded an Engineering, Procurement, and Construction (EPC) contract worth over $5.5 billion. ADNOC Gas is managing the design and construction and has reaffirmed its intention to become an equity partner and operator of Ruwais LNG by acquiring ADNOC’s stake.
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