Adnoc Gas (ADX:ADNOCGAS) delivered robust earnings in the third quarter as revenue surged 8% year over year, driven by higher sales volumes and stronger pricing for export-traded liquids. For the quarter ended Sept. 30, the Abu Dhabi-based natural gas distributor reported an attributable profit of $1.24 billion, up from $1.12 billion a year earlier.
Revenue climbed to $4.87 billion from $4.77 billion, fueled by improved sales volumes of both natural gas liquids (NGL) and non-NGL products. NGL products, which include propane, butane, and paraffinic naphtha, generated $2.2 billion in revenue for the third quarter, a significant increase from $1.86 billion in the prior year.
Simultaneously, sales of non-NGL products, including natural gas, ethane, and sulfur, rose to $1.3 billion 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,' commented Chief Executive Officer Ahmed Alebri.
Adnoc Gas aims to expand its profitability in the near term by capitalizing on the growing demand for gas in the United Arab Emirates. Under its updated expansion strategy, the company is targeting over 40% EBITDA growth by 2029, with plans to boost capital expenditure to as much as $15 billion from 2025 through 2029.
Additionally, the company revealed plans 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. The transaction is expected to close in the second half of 2028, and the plant is projected 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 capitalize on opportunities arising from the forecast increase in both domestic and global demand for the lower carbon gases we produce,' Alebri added.
The stock was up 2% in afternoon trading..