Robust full-year performance, reporting $22.7 billion in revenues and $4.7 billion in net income exceeding market expectations
Board confirms full-year dividend of $3.25 billion, following payment of interim cash dividend of $1.625 billion
FY 2023 free cash-flow of $4.5 billion exceeds the Company’s annual dividend by 37%
Abu Dhabi, UAE – February 12, 2024: ADNOC Gas plc and its subsidiaries (together referred to as “ADNOC Gas” or the “Company”) (ADX symbol: “ADNOCGAS” / ISIN: “AEE01195A234”), a world-class integrated gas processing company, today announced its consolidated financial results for the three months ended December 31, 2023 (“Q4 2023”) and for the period from 8 December 2022 (date of incorporation) to 31 December 2023 (“FY 2023”). The unaudited pro forma consolidated financial results of the Company for the comparative period (i.e., the three- and 12-month period ended December 31, 2022 (“Q4 2022” and “FY 2022”) noted herein are reported on a Pro Forma Adjusted basis .
Improved pricing environment and volume growth drive performance
ADNOC Gas delivered a strong financial performance in Q4 2023, driven by substantial volume growth and a positive pricing environment. The Company’s Q4 2023 revenue increased by 7% year-on-year to $6,301 million, processed volumes rose to 912 Trillion British Thermal Unit (TBTU), enough to supply 6 million homes with energy for a period of 1 year, up 5% compared to the same period in the previous year. As a result, Q4 2023 EBITDA increased by an impressive 15% year-on-year to $2,212 million while net income for the quarter rose 24% year-on-year to $1,345 million.
The Company’s strong performance was supported by its sustained focus on delivering efficiency improvements and an increase in the proportion of higher-margin liquids. Net income for FY 2023 was $4,720 million significantly above market expectations..
Dr. Ahmed Alebri, Chief Executive Officer of ADNOC Gas, commented: “ADNOC Gas delivered a strong set of results in 2023, overcoming a challenging market environment in the first half of the year. Our strong performance is a testament to the resilience of the Company and our ability to maintain strong margins through the commodity cycle. In 2023, we made substantial investments to drive our growth strategy, awarding EPC contracts totaling $4.9 billion, paving the way for significant capacity expansion. Further, ADNOC Gas sustained its strong sales momentum during the year, signing new LNG supply agreements valued between $9 billion and $12 billion, capitalizing on the growing global demand for LNG as a transitional fuel. I am pleased to report that our strong performance across the entire business enabled us to exceed our 2023 targets as per our guidance to the market.”
Significant growth investments: $4.9 billion in contracts awarded in 2023
In 2023, ADNOC Gas committed substantial investments that will drive its long-term and sustainable growth. The Company awarded a $3.6 billion contract for commissioning new capacity and expanding its gas processing facilities. Additionally, $1.3 billion was allocated for contracts to expand the Company’s natural gas pipeline network as part of the ESTIDAMA program, aimed at enabling the supply of higher volumes of natural gas to its customers in the Northern Emirates.
Committed to ADNOC’s and UAE’s Net-Zero ambition
ADNOC Gas is fully committed to supporting ADNOC Group with its target of delivering 25% emissions intensity reductions by 2030 and ADNOC’s target to achieve Net-Zero by 2045. To enable this bold ambition, the Company awarded a $615 million contract for one of the MENA region’s largest integrated carbon capture projects, at the Habshan gas processing plant. The project, which ADNOC Gas will operate on behalf of ADNOC, provides the capacity to capture and store 1.5 million tons of carbon dioxide per annum.
Full year dividend confirmed
For the financial year 2023, ADNOC Gas confirms its dividend of $3.25 billion, of which an inaugural interim cash dividend of $1.625 billion was paid in December 2023 and a further $1.625 billion will be paid in the second quarter of 2024. Following the dividend payment for 2023, the Company expects annual dividend growth of 5% per share over the next four years, underscoring the strength and visibility of ADNOC Gas’ future cash flows.
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ADNOC Gas was incorporated in the Abu Dhabi Global Market, Abu Dhabi, UAE on 8 December 2022 and the relevant assets were contributed to ADNOC Gas effective 1 January 2023 as part of a reorganisation (the “Reorganisation”) that included the entry into a gas supply and purchase agreement, a transitional marketing and transportation agreement, a sulphur sales and marketing agreement, a pipelines use and operation agreement, a re-injection gas sale agreement and certain lease agreements. The unaudited pro forma financial results for FY 2022 presented in this document give effect to the impact of the Reorganisation as if the Reorganisation had taken place on 1 January 2022. The unaudited pro forma financial results for FY 2022 have been prepared for illustrative purposes only and are based on available information and certain assumptions and estimates that we believe are reasonable and may differ materially from the actual amounts that would have been achieved had the Reorganisation taken place on 1 January 2022.
1. Includes a US$ 405 million benefit from recognizing a deferred tax asset in 2023, out of which US$ 298 million relates to prior financial year
2. As per the unaudited financial statements
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 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.
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For investor inquiries, please contact:
Zoltan Pandi
Vice President, Investor Relations
+971 (2) 6017087
ir@adnocgas.ae
For media inquiries, please contact:
Jaber Obaid
External Communication Manager
+971501595034
media.adg@adnoc.ae
