ADNOC Gas and its subsidiaries topped earnings of $5bn for the full year 2024, and announced its highest quarterly income of $1.38bn since its IPO, surpassing market expectations for both periods.
Robust demand for domestic gas, which supported volume growth and improved pricing, helped adjusted net income for FY2024 increase by an impressive 13 per cent year-on-year to $5.01bn. Total sales volumes for the year increased by 2 per cent to 3,616 million MMBTU.
Adjusted revenues increased by 7 per cent YoY to $24.43bn because of the 2 per cent increase in sales volume and improved pricing. This led to a strong EBITDA growth of 14 per cent to $8.65bn with a high, stable margin of 35 per cent. Free cash flow for the period reached $4.58bn, reflecting the company’s strong cash conversion capabilities.
ADNOC Gas results
The company also released its fourth quarter results, following the announcement of its updated strategy during Q3 2024. The plan targets an increase of over 40 per cent in EBITDA by 2029 and entails capital expenditure (CAPEX) of up to $15bn for the 2025-2029 period, which includes the acquisition of ADNOC’s 60 per cent share of the lower-carbon intensity Ruwais liquefied natural gas (LNG) project at cost in H2 2028.
ADNOC Gas delivered adjusted revenues of $6.06bn, EBITDA of $2.28bn and a record net income of $1.381bn in the fourth quarter of 2024.
The improvement was driven by several factors including a richer mix of gas, producing more liquids, and improved commercial terms in the domestic market.
Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, commented: “Our record-breaking fourth quarter results demonstrate our ability to deliver on our ambitious growth strategy as we seek to realise EBITDA growth of over 40% by 2029.
“ADNOC Gas’ evolution into one of the highest income-generating companies listed in the UAE is a testament to our commitment to create long-term and sustainable value for our shareholders. We continue to invest in growth projects to meet the growing demand for lower carbon Domestic Gas, LPG and LNG, both locally and globally as key fuels in the energy transformation.”
Full-year dividend confirmed
ADNOC Gas said it will pay total dividend of $3.412bn, of which an interim cash dividend of $1.706bn was paid in September 2024 and an additional $1.706bn is expected to be paid in April 2025.
The final dividend for FY 2024 is in line with the company’s policy to increase the dividend by 5 per cent annually and reflects the company’s strong free cash flow, which exceeds the dividend commitment by over $1bn.
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