In a statement posted on the Abu Dhabi Financial Market website, the company said it recorded revenue of $5.2 billion in the first quarter of 2023, compared to initial adjusted revenue for the same period of 2022, which amounted to $6.2 billion. this increase to the price situation on world markets.
ADNOC Gas said it maintained high levels of reliability across all of its operations during the first quarter, with a 98.5% reliability rate across all of its facilities.
It added that it had net profit of $1.3 billion in the first quarter of this year, compared to an initial adjusted net profit of $1.2 billion in the first quarter of 2022.
Reaffirming its commitment to a sustainable and cumulative dividend policy, ADNOC Gas aims to pay an interim dividend of $1.625 billion in the fourth quarter of 2023, and an additional $1.625 billion in the second quarter of 2024 for the second half of 2023.
The company also plans to increase the earnings target value by $3.25 billion at a growth rate of 5% per annum based on dividends per share during the period 2024-2027.
The dividend growth reflects ADNOC Gas’ strong and flexible future cash flows, which provide more opportunities to invest in long-term future growth and provide stable returns for investors.
According to the release, net income for the first quarter of 2023 includes interest of $300 million in deferred tax principal, which is a one-time item after the company is incorporated.
Data from ADNOC Gas also showed free cash flow in the first quarter of this year was $1.1 billion, compared to free cash flow of $1.4 billion in the first quarter of 2022. .
Despite the decline in Brent crude prices of approximately 24% in the first quarter on an annual basis, according to which the price of gas sales is determined, the company was able to show great flexibility and maintain a high profit margin before calculating interest, taxes, depreciation and consumption of 34% in the first quarter of 2023, only 1% lower than in the first quarter of 2022.
ADNOC Gas has taken advantage of prevailing market conditions to carry out a number of scheduled maintenance operations at its facilities to improve the safety and reliability of the company’s world-class assets and ensure their availability. Scheduled maintenance work was carried out on time and within allocated budgets, allowing the company to increase its production volume in the second quarter of 2023.
ADNOC Gas benefits from a flexible and predictable profit margin, supported by lucrative opportunities for growth and development. During the reporting period, Brent crude prices, by which the selling price of gas is determined, decreased by 24% compared to the first quarter of 2022. Given these low prices, the company demonstrated great flexibility and maintained a high profit margin. before calculating interest, taxes, depreciation and amortization of 34% in the first quarter of 2023, only 1% less than in the first quarter of 2022.
The company took advantage of prevailing market conditions to implement a number of planned maintenance operations at its facilities to improve the safety, reliability and availability of the company’s world-class assets. Scheduled maintenance work was carried out on time and within allocated budgets, allowing the company to increase its production volume in the second quarter of 2023.
The company was able to offset lower world prices and lower production volume in the first quarter of this year by reducing raw gas supply costs. The long-term gas supply agreement ensures reliable supply to ADNOC’s exploration, development and production operations, and also allows the company to benefit from price increases and to protect them in the event of a decline.
ADNOC Gas aims to benefit from the growing global demand for natural gas, with a focus on increasing production capacity and improving operational efficiency. Alongside ADNOC Gas’ continued development and expansion of its gas export business, the company succeeded in February 2023 in delivering the first shipment of liquefied natural gas to Germany from the Middle East from Abu Dhabi. at the floating natural gas import terminal in Brunsbüttel, Germany. . At the beginning of May, ADNOC Gas announced the signing of a three-year agreement with Total Energies to export liquefied natural gas between 2023 and 2025. This agreement confirms ADNOC Gas’ position as a reliable global supplier of natural gas.
On this occasion, Ahmed Al-Abri, CEO of ADNOC Gas, said: “ADNOC Gas achieved strong financial results during the first quarter of 2023, compared to the same quarter in 2022. Despite the significant decline in market prices compared to their highest levels in 2022 “Our performance during this period demonstrates the resilience of the business and its ability to generate attractive returns. The business has maintained a strong profit margin thanks to its continued focus on the excellence and cost optimization, and achieved a net profit of $1.3 billion.”
He added: “The company is committed to continuing to implement its growth and development strategy which was announced during the public offering period, which is supported by ADNOC’s plans to increase its production capacity from its exploration, development and production activities and the company’s plan to improve its product mix. Demand for natural gas is experiencing continued long-term growth. Given its central role in enable a responsible and realistic transition in the global energy sector, ADNOC Gas has a leading position and great capabilities to meet the growing demand for gas locally and internationally, with a focus on reducing emissions in its operations to support the UAE’s strategic initiative to achieve climate neutrality by 2050.
The company is also making great strides in implementing its portfolio of strategic growth and development projects over a five-year period (2023 to 2027), worth $14 billion, which includes a group of grassroots projects aimed at increasing the efficiency of operations and increasing production.
Key projects include increasing ethane (“Meram”) gas recovery and liquefaction across all company operations, in addition to expanding the gas pipeline network by more than 500km to better connect the Emirates du Nord through a project (“estidama”), and the construction of an additional gas processing facility on the site. Near one of ADNOC’s large oil reservoirs (the gas cap in the Bab field), to extract and utilize the gas reserves.
The new facility is expected to add approximately 1.9 billion scfd of processing capacity to ADNOC Gas’ gas processing capacity by 2028 at the earliest.
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