Adnoc Gas (ADX:ADNOCGAS) announced impressive earnings for the third quarter, with revenue increasing by 8% year over year due to higher sales volumes and better pricing for export-traded liquids. For the quarter ending September 30, the Abu Dhabi-based natural gas distributor recorded an attributable profit of $1.24 billion, marking a rise from $1.12 billion the previous year.
Revenue ascended to $4.87 billion from $4.77 billion, propelled by enhanced sales volumes in both natural gas liquids (NGL) and non-NGL products. NGL products, which encompass propane, butane, and paraffinic naphtha, generated $2.2 billion in revenue in the third quarter, compared to $1.86 billion in the previous year.
Conversely, sales of non-NGL products, including natural gas, ethane, and sulfur, reached $1.3 billion, up from $1.27 billion. "Our Q3 results are a testament to our robust performance while our updated strategy supports future proofing our business, aiming for over 40% EBITDA growth by 2029. We're committed to delivering exceptional shareholder value with our ambitious growth plans and an expected 5% annual dividend increase," stated Chief Executive Officer Ahmed Alebri. Adnoc Gas is focused on enhancing its profitability in the near term by leveraging the growing demand for gas in the United Arab Emirates.
With its renewed expansion strategy, the company is eyeing over 40% EBITDA growth by 2029 and aims to increase capital expenditure to approximately $15 billion from 2025 to 2029. Additionally, the company disclosed its intentions to acquire a 60% stake in the Ruwais liquefied natural gas plant in Abu Dhabi from Abu Dhabi National Oil (Adnoc) for an estimated $5 billion.
This transaction is projected to be finalized in the latter half of 2028, with the facility expected to have an annual production capacity of 9.6 million tonnes per annum. "This investment is a central component of our ambitious international growth plans and will strengthen ADNOC Gas' position as a powerhouse in the global LNG market.
Over the next five years, we plan to invest $15 billion in CAPEX in projects that will allow us to seize opportunities arising from the anticipated increase in both domestic and global demand for the lower carbon gases we produce," Alebri added. The stock was up 2% in afternoon trading..