ADNOC Gas posts AED 4.92 billion, sets 2026 net income floor at AED 14.69 billion
Key Facts
ADNOC Gas said on November 10 that net income reached AED 4.92 billion, or $1.34 billion, in the third quarter of 2026, up 101% from AED 2.44 billion, or $665 million, in the second quarter. The company raised the floor of its 2026 net income guidance to AED 14.69 billion, equivalent to $4 billion, according to its statement. The announcement came as market conditions improved during the quarter, but the company said disruption to shipping through the Strait of Hormuz kept the operating environment challenging. The company tied its annual outlook to developments in regional maritime traffic, which it said it continues to monitor closely. The chief executive said operational strength and commercial resilience had enabled the company to meet domestic and international demand "safely and reliably" despite external challenges.
Earnings before interest, taxes, depreciation and amortization rose 70% from the second quarter to AED 7.46 billion, or $2.03 billion, according to the company's statement. Drivers of the improvement included a 20% quarterly increase in UAE gas sales, supported by higher demand, alongside 28% growth in domestic gas segment earnings on this measure, thanks to strong margins. International activities' earnings before interest, taxes, depreciation and amortization also rose 106% from the previous quarter. Earnings from sulphur sales increased 249% over the same period, helping support financial results, the company said. The figures show the contribution of domestic and international activities and sulphur to the quarter's increase in operating earnings.
Disruption to maritime traffic through Hormuz continued to constrain the company's ability to export liquefied petroleum gas, naphtha and liquefied natural gas, The National reported, citing the company. The report said this limited ADNOC Gas's ability to fully benefit from higher gas and naphtha prices, even as market conditions improved in the third quarter. Revenue fell about 10% year on year to $4.38 billion, according to the newspaper. The annual decline provides a different context for the quarterly jump in net income, which was measured against a second quarter in which net income was AED 2.44 billion. In August, the company had expected annual net income of between $3.5 billion and $4 billion, assuming a full recovery in maritime traffic and price normalization in the fourth quarter of 2026.
The board approved a quarterly dividend of AED 3.45 billion, or $940 million, up 5% year on year, to be paid in December 2026. The payout is in line with the company's target of increasing dividends by 5% annually through 2030, according to the statement. Cash flow from operating activities reached AED 14.03 billion in the first nine months of 2026, compared with year-to-date dividends of AED 10.36 billion. The company said cash flow covered dividends 1.3 times. These figures link the planned payout to the ability of operating cash flow to cover payments over the period cited.
On operations, ADNOC Gas said it was on track to restore full operating capacity at the Habshan complex by the second quarter of 2027. The company began work on the third phase of its rich gas development project, which includes building a natural gas liquids fractionation unit in Ruwais with export capacity of more than 8 million tonnes a year upon completion. It also plans investments of about $28 billion between 2026 and 2030, and raised its target for earnings before interest, taxes, depreciation and amortization growth to 60% by 2030 compared with 2023 levels. In market reaction on November 10, the share price stood at $3.24, compared with a previous close of $3.18, and a report attributed to Reuters described the move as limited. Regional maritime developments remain linked to the company's 2026 net income outlook.