ADNOC Gas post robust Q1 profit of $1.1b, retains 2029 growth target

ADNOC Gas and its subsidiaries have reported a net income of $1.1 billion for Q1 2026, highlighting strong operational performance and robust financial health. The company successfully fulfilled domestic customer requirements while efficiently managing logistics, inventories, and supply chains to mitigate the impact of ongoing export disruptions, ADNOC Gas said in a statement.

Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said: “This quarter was shaped by exceptional external disruption, and our priorities were clear: protect our people and assets, maintain safe domestic supply, and protect shareholder value through disciplined execution. Our Q1 results demonstrate resilience, supported by rigorous cost management and a solid balance sheet.”

Regional uncertainty

Amid increased regional uncertainty and difficult market conditions, which have caused major disruption in the energy sector and to maritime movements through the Strait of Hormuz, ADNOC Gas achieved a net income of $1.1 billion, which is only 8% below the previous quarter.

“As we manage the disruption to maritime movements through the Strait of Hormuz, the long-term foundations of ADNOC Gas remain intact. Demand growth in the UAE – supported by continued industrial expansion – and increased flexibility associated with the UAE’s evolving production framework reinforce our confidence in ADNOC Gas’ strategy and dividend commitment,” Al Nuaimi said.

ADNOC Gas produced $572 million in free cash flow and closed the quarter with $4.2 billion in cash on its balance sheet. The company’s strong financial position enables ongoing investment throughout market cycles supporting its commitment to meet the 2026 dividend outlook and its policy of annual dividend growth at 5% until 2030, it said – adding that the board has approved a quarterly dividend of $941 million, set for payment in June 2026.

“As we manage the disruption to maritime movements through the Strait of Hormuz, the long-term foundations of ADNOC Gas remain intact. Demand growth in the UAE – supported by continued industrial expansion – and increased flexibility associated with the UAE’s evolving production framework reinforce our confidence in ADNOC Gas’ strategy and dividend commitment."
- Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas

ADNOC Gas’ balance‑sheet strength and disciplined capital allocation continue to underpin the resilience of the business, the company said.  Its long‑term growth ambitions remain intact, with its targeted EBITDA growth of over 40% between 2023 and 2029 unchanged.

ADNOC Gas said it remains optimistic about UAE economic growth, which is boosting domestic demand – highlighted by the TA’ZIZ $5 billion supply contract and ADNOC’s $55 billion investment in local manufacturing under the Make it in the Emirates initiative. Growth in UAE domestic and industrial customers increases demand for ADNOC Gas, the country's largest energy supplier for power generation and the industrial sector.

Habshan complex incidents

ADNOC Gas experienced two security-related incidents at the Habshan site on 3 and 8 April, prompting activation of standard response and continuity protocols, the company said. The operations teams responded effectively, prioritising safety and minimising interruptions to customers, it said. Within a short period, 60% of the complex’s processing capacity was restored, and the ADNOC Gas is currently working toward achieving 80% restoration by the end of 2026, with full capacity restored in 2027.

A detailed technical assessment of the impact from these incidents is progressing amid a dynamic supply chain environment and is nearing completion, ADNOC Gas said. Although some processing trains at Habshan remain offline, overall supply across the ADNOC Gas network has been substantially restored, allowing the company to continue meeting domestic customer demand through its broader infrastructure. Additionally, Phase 1 of the Rich Gas Development project is expected to further ease bottlenecks and enable ADNOC Gas to take advantage of increased upstream associated gas output following the recent lifting of production constraints, it said.

Strait of Hormuz update

While commodity prices rose significantly, disruption to maritime movements through the Strait of Hormuz continues to impact liftings of ADNOC Gas products, the company said.

To date through proactive tank, inventory and supply-chain management, the company is actively collaborating with customers and partners on a transaction-by-transaction basis to fulfill commitments wherever possible, it said.

The ongoing closure of the Strait of Hormuz is expected to affect ADNOC Gas’ Q2 net income, with projections indicating a range between $400 million and $600 million assuming maritime operations return to normal prior to the end of the quarter.

On the assumption that the Strait is open for the second half of 2026, higher LNG and LPG prices, in line with the current Brent forward curve, are expected to help offset deferred volumes. ADNOC Gas anticipates full-year 2026 net income to range from $3.5 billion to $4.0 billion, with this outlook reflecting the expected impact of the second quarter, it said.