ADNOC Gas (ADNOCGAS) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income reached $1.19 billion, up 21% year-over-year, with EBITDA at $2.09 billion, up 18%, and revenue at $6.08 billion, a 13% increase, driven by strong domestic gas growth and favorable pricing.

• H1 2024 revenue totaled $12.09 billion, EBITDA $4.16 billion (up 18%), and net income $2.38 billion (up 21%), reflecting robust operational performance and efficiency gains.

• Free cash flow for Q2 was $1.0 billion, with H1 2024 free cash flow at $2.2 billion, exceeding the interim dividend by 28%.

• Interim dividend of $1.71 billion to be paid in September 2024, a 5% increase year-over-year, with a final dividend of the same amount expected in Q2 2025.

• Operational reliability remained high at 99.7%, with a continued focus on efficiency, cost optimization, and zero TRIR safety performance in Q2.

Financial highlights

• Q2 2024 revenue rose 13% year-over-year to $6.08 billion; EBITDA grew 18% to $2.09 billion; net income increased 21% to $1.19 billion.

• H1 2024 revenue was $12.09 billion (up 14%), EBITDA $4.16 billion (up 18%), and net income $2.38 billion (up 21% excluding a $298 million non-recurring gain in H1 2023).

• Free cash flow for Q2 2024 was $1.0 billion, with H1 2024 at $2.2 billion.

• Capital expenditure in Q2 2024 was $431 million, up 91% year-over-year, mainly for growth projects.

• H1 2024 CAPEX totaled $819 million, with $237 million for asset maintenance and turnaround activities.

Outlook and guidance

• 2024 EBITDA margin guidance maintained at 34%.

• Full-year sales volume guidance for domestic gas updated to 2,240–2,280 TBTU, with lower H2 volumes expected due to Q4 shutdowns.

• 2024 capex guidance revised to $2.0–2.3 billion due to the ESTIDAMA project transfer.

• Net profit unit margin guidance for 2024: domestic gas $1.01–1.05/MMBTU, exports & traded liquids $1.75–1.85/MMBTU.

• Target dividend growth rate of 5% per annum through 2027.