ADNOC Gas weighs alternative export routes amid Hormuz disruption as quarterly profit jumps 101%
Key Facts
ADNOC Gas is assessing alternative ways to deliver gas, including a potential export facility in Fujairah, as net income jumped 101% in the third quarter to $1.34 billion from $665 million in the second quarter. Asked about the potential facility, the company’s chief financial officer said, "Nothing is decided at this moment, and there is no commitment. When there are developments, we will inform you." This puts Fujairah among the growth options the company is evaluating, rather than among approved projects. The review of alternative routes comes as the company said disruption to shipping through the Strait of Hormuz continues to create a challenging operating environment. Meanwhile, earnings before interest, taxes, depreciation and amortization rose 70% quarter on quarter to $2.03 billion, driven by operational performance and commercial execution across key business lines.
Domestic gas sales in the UAE rose 20% quarter on quarter in the third quarter, supported by demand the company described as resilient. ADNOC Gas said improved margins lifted earnings before interest, taxes, depreciation and amortization from its domestic gas business by 28% over the same period. International products earnings also increased 106% from the previous quarter, as the company expanded external sales, drawing on its commercial expertise and operational strength. The sulphur business recorded a further increase, with earnings before interest, taxes, depreciation and amortization up 249% quarter on quarter. These gains show how multiple domestic and international businesses contributed to the quarterly profit recovery, while the Fujairah option remained at the assessment stage.
Following the strong performance, the company raised the floor of its fiscal 2026 net income guidance to $4 billion. It kept the outlook tied to developments in regional maritime conditions, signaling that disruption to shipping through Hormuz continues to affect the operating environment. The company said market conditions improved during the third quarter, although shipping disruption remained a headwind. This caveat balances strong quarterly results with an annual outlook still conditional on regional developments. The company did not set a date for a decision on the Fujairah facility, and its chief financial officer said it would announce developments when they become available.
Alongside its assessment of additional export options, ADNOC Gas is proceeding with an expansion program targeting 60% growth in earnings before interest, taxes, depreciation and amortization by 2030 compared with 2023, with planned investment of about $28 billion between 2026 and 2030. At the Ruwais liquefied natural gas project, the company installed the first two main refrigeration compressor trains during the third quarter and said the project continues to make progress. The Ruwais project was originally planned for Fujairah before being moved in 2023 to Ruwais Industrial City. This places the project under construction on a different track from the potential facility currently being assessed in Fujairah. The chief financial officer linked the case for investing in growth opportunities to rising gas demand, particularly in Asia and the UAE.
On liquidity and distributions, cash flow from operations totaled $3.82 billion in the first nine months of 2026, against year-to-date dividends of $2.82 billion, covered by cash flow 1.3 times. The board also approved a quarterly dividend of $940 million, up 5% year on year, payable in December 2026. The distributions follow an improvement in quarterly earnings and come within the nine-month period for which the company reported the cited cash flow levels. Operationally, ADNOC Gas said restoration work at the damaged Habshan complex progressed according to plan in the third quarter. The company continues to target restoring the complex to full capacity by the second quarter of 2027.