ADNOC Gas Achieves Historic $5 Billion Net Income for 2024 Driving Sustainable Growth

ADNOC Gas plc has announced a record-breaking $5 billion net income for the fiscal year 2024, setting a new milestone for the company. Additionally, the quarterly revenue reached $1.38 billion, surpassing expectations laid out by Bloomberg.

CEO Fatema Al Nuaimi stated, “Our exceptional fourth-quarter results showcase our capability to execute an ambitious growth strategy. We aim for more than 40% EBITDA growth by 2029.” ADNOC Gas has become one of the UAE's highest-revenue publicly traded companies, reflecting its commitment to generating sustainable long-term value for shareholders. The company is investing in various growth initiatives to meet the rising global demand for low-carbon natural gas, liquefied petroleum gas, and liquefied natural gas, all crucial for the energy transition.

For the fiscal year, adjusted net income saw a 13% increase, driven by robust demand for household gas. Total sales volume grew by 2%, reaching 3.616 billion MMBTU, with a significant contribution of 13% from the ADNOC LNG joint venture. The adjusted revenue rose by 7% to $24.43 billion, primarily due to higher sales volume and improved pricing. EBITDA climbed 14% to $8.65 billion, maintaining a strong 35% profit margin. The company reported free cash flow of $4.58 billion, highlighting its effective cash conversion capabilities.

The impressive performance in the fourth quarter aligns with the strategic initiatives announced after the third quarter of 2024. ADNOC Gas plans to invest up to $15 billion in capital expenditures from 2025 to 2029, which includes acquiring 60% of ADNOC's low-carbon intensity Ruwais LNG project at cost in the latter half of 2028.

In the fourth quarter, ADNOC Gas reported adjusted revenue of $6.06 billion, EBITDA of $2.28 billion, and net income of $1.38 billion. This growth was attributed to a richer gas portfolio, increased liquid output, and improved domestic market conditions.

The company has confirmed a total dividend of $3.41 billion for the fiscal year, with an interim cash dividend of $1.71 billion already distributed in September 2024. The remaining dividend is expected to be distributed in April 2025, pending approval at the annual general meeting.

ADNOC Gas's commitment to increasing annual dividends by 5% reflects its strong free cash flow, exceeding its dividend commitments by over $1 billion.