Company demonstrated resilience of its business model by maintaining stablemargins in a lower price environment Robust H1 2023 performance places the Company firmly on track to meet its 2023 guidance.
Recent $1.34 billion contract awards for new natural gas pipeline to the
Northern Emirates underscore ADNOC Gas’ commitment to profitable growth.
Abu Dhabi, UAE: ADNOC Gas plc (together with its direct and indirect subsidiaries, “ADNOC
Gas” or the “Company”) (ADX symbol: “ADNOCGAS” / ISIN: “AEE01195A234”), the world-class integrated gas
processing company, today announced its financial results for the three months and six months ended June 30,
2023 (“Q2 2023” and “H1 2023”). The unaudited pro forma financial results of the Company for the comparative
period (i.e., the three and six-month period ended June 30, 2022 (“Q2 2022” and “H1 2022”) noted herein are
reported on a Pro Forma Adjusted basisi.
Robust financial performance despite pricing impact
The Company’s H1 2023 revenue stood at a $10.6 billion compared to Pro Forma Adjusted Revenue of $13.3
billion in H1 2022, impacted by the pricing environment. Revenue in Q2 2023 was reported at $5.4 billion
compared to Pro Forma Adjusted Revenue of $7.1 billion in Q2 2022. ADNOC Gas maintained high reliabilityii
with a 98.9% average across its facilities in H1 2023, contributing to a 15% increase in production volumes in
Q2 2023 over Q1 2023.
ADNOC Gas adapted to lower LPG and Brent crude oil prices in H1 2023 compared to the high pricing
environment of H1 2022. The Company strategically shifted towards higher-margin export liquids and focused on
increased efficiency. These measures enabled the Company to maintain a flat EBITDA of $1.8 billion and Net
Income of $1.0 billion in Q2 2023, demonstrating that ADNOC Gas is a predictable and resilient margin business
underpinned by profitable growth.
Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented: “Our results for the first half of 2023
showcase the resilience and robustness of our business in the current lower price environment compared to the
higher prices witnessed in H1 2022. For the period ending 30 June 2023, we delivered a net income of $2.3
ADNOC Classification: Public
billion. This performance demonstrates the strength of our business, which was also supported by selling more
high-margin export liquids – a strategy that has proven effective.
“We continue to witness long-term structural demand growth for natural gas as a critical fuel for the responsible
global energy transition. ADNOC Gas remains fully committed to investing in our people, operations, and markets,
and we have continued to invest in our strategic growth opportunities throughout the first half of 2023.
“Our recent signing of significant long-term LNG agreements and our domestic investments demonstrate that we
remain ideally positioned to meet both local and international demand, while further decarbonizing our operations
in line with the UAE’s Net-Zero 2050 ambition, as we continue to deliver value for our shareholders over the
longer-term.”
Continuing to invest in growth
In line with ADNOC Gas’ growth strategy, the Company recently awarded $1.34 billion in contracts for extending
its natural gas pipeline to over 3,500km, serving the Northern Emirates, marking another key milestone for the
sales gas pipeline network enhancement (ESTIDAMA) program. This strategic pipeline extension will drive further
growth for ADNOC Gas as it continues to provide sustainable gas supplies to customers in support of the UAE’s
plan to achieve gas self-sufficiency.
Focused on broadening the international customer base
ADNOC Gas continues to capitalize on the growing global demand for natural gas while extending its reach and
reputation as a reliable supplier. In a significant post-period event, on July 18, ADNOC Gas announced a $7-9
billion 14-year supply agreement with Indian Oil Corporation Ltd. (IOCL) for the export of up to 1.2 mmtpa of
LNG. This comes on the heels of the Company’s Q2 2023 signing of a supply agreement with TotalEnergies Gas
and Power for the export of LNG to various markets around the world. In February, ADNOC Gas made the first-
ever delivery of LNG from the Middle East to Germany, paving the way for longer-term deliveries.
Dividend guidance maintained
As stated during its IPO, ADNOC Gas maintains its dividend target of $1.625 billion in the fourth quarter of 2023
and a further $1.625 billion dividend in the second quarter of 2024. Thereafter, ADNOC Gas expects to grow the
annual target dividend amount by 5% per annum on a per-share basis over the 2024-2027 period. The targeted
growth in dividends underscores ADNOC Gas’ strong and visible future cash flows, which provide ample
headroom to invest in long-term future growth and provide stable returns for shareholders.
ADNOC Classification: Public
US $ Million H1 22 H1 23 YoY % Q2 22 Q1 23 Q2 23 YoY % QoQ %
Pro Forma
Adjusted
resultsi
H1 23 vs.
H1 22
Pro Forma
Adjusted
resultsi
Q2 23 vs.
Q2 22
Q2 23 vs.
Q1 23
Revenue 13,284 10,623 -20% 7,123 5,226 5,397 -24% 3%
COGS -7,773 -6,015 -23% -4,241 -2,938 -3,078 -27% 5%
Opex -947 -1,067 13% -468 -514 -553 18% 8%
EBITDA 4,564 3,540 -22% 2,414 1,774 1,766 -27% 0%
Net Income 2,553 2,259 -12% 1,380 1,275 984 -29% -23%
EBITDA Margin 34% 33% -1% 34% 34% 33% -1% -1%
Capital:
Expenditure -289 -399 38% -166 -174 -226 36% 30%
Free Cash Flow 2,882 2,109 -27% 1,509 1,075 1,035 -31% -4%
i ADNOC Gas was incorporated in the Abu Dhabi Global Market, Abu Dhabi, UAE on 8 December 2022 and the relevant
assets were contributed to ADNOC Gas effective 1 January 2023 as part of a reorganisation (the “Reorganisation”) that
included the entry into a gas supply and purchase agreement, a transitional marketing and transportation agreement, a
sulphur sales and marketing agreement, a pipelines use and operation agreement, a re-injection gas sale agreement and
certain lease agreements. The unaudited pro forma financial results for H1 2022 presented in this document give effect to the
impact of the Reorganisation as if the Reorganisation had taken place on 1 January 2022. The unaudited pro forma financial
results for H1 2022 have been prepared for illustrative purposes only and are based on available information and certain
assumptions and estimates that we believe are reasonable and may differ materially from the actual amounts that would have
been achieved had the Reorganisation taken place on 1 January 2022.
ii Reliability is defined as total available hours (8,760 hours per annum) reduced by the hours of non-availability due to
unscheduled outages divided by total available hours. Average Reliability of 98.9% was achieved across relatable ADNOC
Gas facilities.
ADNOC Classification: Public
About ADNOC Gas:
ADNOC Gas, listed on the ADX (ADX symbol: “ADNOCGAS” / ISIN: “AEE01195A234”), is a world-class, large-
scale integrated gas processing company operating across the gas value chain, from receipt of raw gas feedstock
from ADNOC through large, long-life operations for gas processing and fractionation to the sale of products to
domestic and international customers. ADNOC Gas supplies approximately 60% of the UAE’s sales gas needs
and supplies end-customers in over 20 countries. To find out more, visit: http://www.adnocgas.ae.
