Adnoc Gas has reported an impressive annual increase in its first-half results, driven by both industrial expansion and population growth, resulting in a significant uptick in domestic gas sales. As a key player within the integrated gas processing sector, Adnoc Gas has effectively leveraged its strong business model coupled with a relentless focus on operational efficiency and stringent cost control measures.
For the six months ending June 30, the profit attributable to the company’s owners escalated to $2.38 billion, up from $2.26 billion during the same period the previous year. Notably, revenue jumped to $9.42 billion, reflecting a marked increase from $8.16 billion year-on-year. When accounting for contributions from its stake in Adnoc LNG and other segments, Adnoc Gas' total revenue surged to $12.09 billion, up from $10.62 billion a year prior, highlighting the company’s robust financial health and strategic operational framework. In light of these encouraging results, the board of Adnoc Gas has approved an interim dividend of 0.08164 Emirati dirham per share, scheduled for payment between September 2 and September 4, 2024, to shareholders who are on the record as of August 19, 2024.
Additionally, on December 14, 2023, the company distributed its inaugural interim cash dividend of 0.07776 dirham per share, reflecting its commitment to returning value to its shareholders. Furthermore, the Abu Dhabi-based natural gas distributor anticipates distribution of a substantial final dividend amounting to $1.71 billion in April 2025, contingent upon approval at its annual general meeting.
This final dividend signifies a 5% increase in Adnoc Gas' annual dividend per share, aligning with the company’s established dividend policy that outlines a total dividend payout of $3.41 billion for the entirety of the year 2024. With the capacity to meet over 60% of the UAE’s gas demand, the company has adjusted its guidance for full-year 2024 net profit from domestic gas products.
The revised forecast now positions the net profit range between $1.01 and $1.05 per million British thermal units (mmBtu), down from the initial estimation of $1.05 to $1.07 per mmBtu. Concurrently, Adnoc Gas has fine-tuned its investment target range to $2 billion to $2.3 billion, narrowing it from the previous $2 billion to $2.5 billion. Chief Executive Officer Ahmed Alebri commented on the company’s results, stating, "Our robust Q2 results clearly reflect our focus on growth, significantly strengthening revenues and profitability while continuing to maintain a healthy margin.
We are well positioned to pursue our ambitious growth agenda, underpinned by the strength, expansion, and ambition of the UAE market." Alebri's confidence in the company’s trajectory is supported by a notable uptick in shares, which gained almost 3% in recent trading on Monday, reflecting investor optimism in the company's strategic outlook..