ADNOC Gas Reports Record $5 Billion Net Income for 2024

ADNOC Gas has announced a record-breaking net income of $5 billion for the full year 2024, alongside its highest-ever quarterly earnings of $1.38 billion since its IPO. The company’s performance exceeded Bloomberg consensus estimates for both periods.

Strong Financial Performance and Growth Strategy

“Our outstanding fourth-quarter results highlight our ability to execute on our ambitious growth strategy as we target EBITDA growth of over 40% by 2029,” said Fatema Al Nuaimi, CEO of ADNOC Gas. “We have emerged as one of the highest income-generating companies listed in the UAE and continue to invest in key growth projects to meet rising global and domestic demand for lower-carbon Domestic Gas, LPG, and LNG.”

For FY 2024, adjusted net income surged by 13% year-on-year to $5 billion, supported by strong demand for domestic gas, higher sales volumes, and improved pricing. Total sales volumes grew by 2% to 3,616 million MMBTU, with ADNOC LNG’s (ALNG) joint venture contribution rising by 13%.

Revenue also saw a 7% increase year-on-year, reaching $24.43 billion, driven by stronger pricing and higher sales volume. This growth propelled EBITDA up by 14% to $8.65 billion, maintaining a high, stable margin of 35%. Free cash flow for the year reached $4.58 billion, underscoring ADNOC Gas’s strong cash conversion capabilities.

Fourth Quarter Performance and Future Investments

The company’s stellar fourth-quarter results were attributed to a richer gas mix, increased liquids production, and improved commercial terms in the domestic market. In Q4 2024, ADNOC Gas reported adjusted revenues of $6.06 billion, EBITDA of $2.28 billion, and net income of $1.381 billion.

Following the unveiling of its updated growth strategy after Q3 2024, ADNOC Gas is targeting an over 40% increase in EBITDA by 2029. The company has earmarked up to $15 billion in capital expenditure (CAPEX) between 2025 and 2029, which includes acquiring ADNOC’s 60% share of the lower-carbon Ruwais liquefied natural gas (LNG) project at cost in H2 2028.

Dividend Payout and Shareholder Returns

For FY 2024, ADNOC Gas has confirmed a dividend payout of $3.412 billion. An interim cash dividend of $1.706 billion was distributed in September 2024, with an additional $1.706 billion expected in April 2025, pending shareholder approval at the Annual General Meeting (AGM). This aligns with the company’s commitment to increasing annual dividends by 5% and is backed by free cash flow that exceeds dividend commitments by over $1 billion.

With strong financials, strategic investments, and a clear growth roadmap, ADNOC Gas is well-positioned to drive sustained value creation in the coming years.