ADNOC Gas PLC announced today its consolidated financial results for the three months ending March 31, 2024, achieving a strong performance during the first quarter of this year, as revenues increased by 15% year-on-year to reach 22.07 billion dirhams, thanks to an increase The volume of domestic demand increased by 14% year on year.
As a result of the increase in revenues and the continuous and ongoing focus on increasing operational efficiency, first-quarter 2024 earnings before interest, taxes, depreciation and amortization costs rose to 7.62 billion dirhams, recording an increase of 17% year-on-year.
The 25-year gas supply and purchase agreement contributed to an increase in the EBITDA margin to 35% from 34% recorded in the previous year.
The company recorded a noticeable improvement in adjusted net income by 21% on an annual basis, reaching 4.35 billion dirhams. The percentage of net income from local gas sales also increased to 20% on an annual basis, which confirms the company’s high efficiency as a local supplier.
It is worth noting that ADNOC Gas provides more than 60% of the gas sales needs in the UAE and is the largest supplier to the petrochemical sector in the country.
Ahmed Al Abri, CEO of ADNOC Gas, said: “We are proud to have achieved an increase in adjusted net income of 21% year-on-year, thanks to the strong sales volume and the continued improvement in the margin of our local operations. The improvement has also continued in all of the company’s other key measurement parameters, including: The most important of which is our strategic growth projects, which included the signing of additional sales agreements for liquefied natural gas, which strengthened our position as a reliable global supplier.”
He added, “The strong profits recorded in the first quarter of this year were achieved thanks to an increase in cash flow by 47% on an annual basis. Thanks to this increase, we will be able to increase annual dividends by 5% to reach 12.52 billion dirhams in 2024, in line with the policy.” Our dividends: Thanks to the company’s strong financial performance and exceptional portfolio of growth projects, our shareholders will continue to benefit from an annual dividend yield of more than 5% in addition to the potential for share price appreciation.”
With the company’s business margin expected to grow by up to 40% before financing costs, taxes, depreciation and deductions, ADNOC Gas plans to invest more than 47 billion dirhams in local and global growth opportunities between 2024 and 2028, and the company is in an ideal position to benefit from an expected increase in the amount of associated gas. For oil, ADNOC plans to increase its production capacity to five million barrels of oil per day by 2027.
The company seeks to grow globally by acquiring new centers in the gas value chain in Europe, India, China and Southeast Asia, with the aim of strengthening the country’s position in international markets for liquefied natural gas sales and achieving additional revenues that enhance its current business.
The company continued its commitment to raising its level of operational efficiency, as it achieved in the first quarter of 2024 an average operational performance across its facilities of 99.4%, compared to an average of 99.1% in 2023.
In the first quarter of 2024, ADNOC achieved remarkable progress in the Ruwais LNG project, which is a strategic project for ADNOC and the UAE, and ADNOC Gas is currently providing technical support regarding this facility.
The project gained increasing momentum after ADNOC recently awarded an engineering, procurement and construction contract for the Ruwais LNG project in the first quarter of this year. ADNOC also signed two long-term agreements to supply liquefied natural gas from the facility.
With ADNOC announcing its intention to make a final investment decision regarding the Ruwais LNG project, ADNOC Gas plans to acquire the project to double its LNG production capacity by 2028.
ADNOC Gas continued to make significant progress in two of its strategic growth projects during the first quarter of 2024, disbursing an amount of 1.42 billion dirhams in capital expenditures, an increase of 123% year-on-year, in line with its directions for the fiscal year 2024.
During the first quarter of 2024, the company continued its strong sales momentum continuing from 2023, as it signed a new agreement to supply half a million metric tons of liquefied natural gas for a period of 10 years with GAIL India Limited, the leading natural gas company in India, in an indication On the growing global demand for this commodity as a transitional fuel and on the company’s position as a preferred global export partner.
During the recently held General Assembly meeting, the company’s Board of Directors approved ADNOC Gas’s proposal to distribute dividends for the entire year 2023 in the amount of 11.9 billion dirhams (3.25 billion US dollars), half of which, amounting to more than 5.9 billion dirhams (3.25 billion US dollars), was paid in December 2023. And the remaining half on April 26, 2024.
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