ADNOC Gas Achieves Record Profit

ADNOC Gas PLC has reported $1.39 billion in net income for the second quarter, rising 16 percent compared to the same three-month period last year and setting a quarterly record for the company. 

Last year, the gas processing and sales arm of Abu Dhabi National Oil Co. logged its highest annual net earnings – $5 billion – thanks to natural gas demand in the United Arab Emirates.

For the April-June 2025 quarter, revenue dipped to $5.96 billion from $6.08 billion for Q2 2024 as a weakening of commodity prices offset an overall increase in sales volumes, according to figures reported to the local stock exchange.

Domestic gas sales rose to 611 trillion British thermal units (TBtu) in Q2 2025 from 580 TBtu in Q2 2024. Export and traded liquids slid to 252 TBtu from 266 TBtu. Sales from the ALNG JV, in which ADNOC Gas owns a 70 percent stake, increased to 65 TBtu from 56 TBtu.

ADNOC Gas expects sales volumes excluding sulfur to land between 3,630 TBtu and 3,700 TBtu this year. “As with prior years, sales volumes should follow a seasonal pattern with an uptick over the summer period”, it said. “Furthermore, it is also important to note that in 2025 our shutdown activity will be higher than normal especially in the Q4 2025 period”.

Meanwhile the quarterly average Brent crude price fell 20 percent year-on-year to $68 a barrel from $85 per barrel. “Conversely, JKM prices saw a significant increase of 31 percent, rising from $9.6/mmbtu to $12.5/mmbtu”, ADNOC Gas told the Abu Dhabi Securities Exchange.

“LPG prices were slightly up on average despite the drop in crude oil price, with propane increasing from $592/tonne to $608/tonne and butane marginally down from $590/tonne to $588/tonne. Naphtha prices averaged at $533/tonne in the period representing a 14 percent drop YoY”.

Domestic gas revenue grew to $1.98 billion for Q2 2025 from $1.73 billion for Q2 2024. Export and traded liquids revenue dropped to $3.1 billion from $3.62 billion. Sulfur revenue more than doubled to $96 million from $43 million. ALNG JV products revenue jumped to $766 million from $672 million.

“These results reflect the lower profit share under the Gas Supply and Payment Agreement with ADNOC Upstream”, ADNOC Gas said. “This 25-year contract, which started at the time of the IPO [initial public offering in March 2023], is well-designed to enable ADNOC Gas to share in any price upside while also providing downside protection in a less favorable macro environment. This agreement has been instrumental in maintaining the company’s strong financial performance amidst a challenging market environment”.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for Q2 2025 totaled $2.26 billion. Domestic gas contributed $920 million, up 32 percent from Q2 2024 driven by better commercial terms and a higher sales volume. Export and traded liquids accounted for $982 million, down 10 percent. Sulphur EBITDA climbed to $81 million from $30 million. ADNOC Gas’ share of ALNG JV EBITDA increased two percent to $270 million.

“By steadfastly executing its growth strategy, the company has successfully enabled the export of higher-margin liquids and maintained a sharp focus on increasing efficiency”, ADNOC Gas said.

“Despite the challenging market conditions, characterized by consumer and geopolitical pressures and a lower oil price environment, the company achieved an impressive 97.6 percent reliability across its assets.

“Furthermore, it achieved a robust EBITDA margin of 37.9 percent, underscoring its ability to navigate volatility and maintain strong financial performance”.

For the full year, ADNOC Gas expects its domestic gas business “to benefit from structural improvement positively impacting sales gas pricing”.

“For export and traded liquids and ALNG JV products our guidance ranges are based upon a Brent price band of $60-70/bbl. While these products are typically closely correlated with Brent it is important to remember that, from time to time, individual product prices may decouple from oil prices in line with the prevailing supply-demand evolution of the respective markets. In addition, mainly sulfur is expected to generate a further $180-200 million net income.

“Total investments are expected to be around $3,000 million in 2025 representing a substantial increase against the prior year as the MERAM project reaches peak activity ahead of start-up”.

ADNOC Gas saw a net capital inflow of about $500 million following its inclusion in the MSCI Emerging Markets Index in June.

“The company is now on course to join the FTSE Index in September 2025, with market estimates of added inflows of over $200 million, further elevating its global investment profile and diversifying its investor base, thereby significantly enhancing liquidity and trading volumes”, it said in a separate statement on its website.

ADNOC Gas ended Q2 2025 with $6.34 billion in current assets including $4.01 billion in cash and cash equivalents. Current liabilities stood at $2.54 billion.

To contact the author, email jov.onsat@rigzone.com