ADNOC Gas delivered a strong financial performance in Q4 2023
ADNOC Gas has announced its consolidated financial results for Q4 2023 and for the financial year 2023 that saw the company deliver 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 noted that its 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 totalling $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, capitalising 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.”
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.
ADNOC Gas added in a statement that it was 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.
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