ADNOC Gas PLC, listed on the Abu Dhabi Securities Exchange, achieved record financial results for the 2024 fiscal year by reporting profits of 18.4 billion AED (approximately $5 billion), marking a 13% growth compared to previous periods. This performance underscores the company’s efforts to diversify its revenue streams and strengthen its position in both local and global gas markets.
Quarter 4 Performance and Financial Highlights
In a statement released on the Abu Dhabi Securities Exchange website, ADNOC Gas announced that it recorded its highest quarterly results since its IPO, with Q4 profits reaching 5 billion AED (about $1.38 billion). The company’s adjusted net income grew by 13% year-on-year, resulting in total annual profits of 18.4 billion AED.
Key Drivers Behind ADNOC Gas Financial Growth
Several factors contributed to this strong performance:
- Increased Domestic Demand: Sales volumes grew by 2%, contributing to improved gas prices in the local market.
- Improved Trade Conditions: Enhanced commercial terms and increased returns from its joint venture in LNG operations boosted overall sales.
- Product Diversification: The company continued to expand its portfolio with high value-added chemical and gas products.
- Operational Efficiency: Strategic operational improvements led to profit margins reaching 35%, along with a robust free cash flow of 16.8 billion AED.
Future Strategies and Dividend Payouts
ADNOC Gas has set a strategic goal to increase its EBITDA by more than 40% by 2029. The strategy includes expected capital expenditures of around 55 billion AED between 2025 and 2029, including the acquisition cost of a 60% stake in the low-emission LNG project in Ruwais.
Furthermore, the company has committed to distributing cash dividends to shareholders. For the 2024 fiscal year, dividend payouts exceeding 12.5 billion AED have been approved, with installments of 6.3 billion AED in September 2024 and an additional 6.3 billion AED in April 2025. This reflects the company’s strong cash generation and its commitment to returning value to its shareholders.
Analysis and Future Outlook
The robust financial performance of ADNOC Gas in 2024 demonstrates its ability to sustain growth amid global economic challenges, driven by increased demand, improved trade conditions, and product diversification. With the continuous rise in gas demand and improved pricing in the local market, analysts expect this growth trajectory to continue, further expanding the company’s market share regionally and globally.
Moreover, the solid free cash flow and high profit margins indicate that ADNOC Gas is well-positioned to meet its ambitious investment plans and growth targets through 2029.