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% year-over-year, surpassing market expectations.

• Revenue reached $6.08 billion, marking the third consecutive quarter above $6 billion and a 13% year-over-year increase, driven by strong domestic gas demand.

• 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 $1,706 million 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

• Revenue for Q2 2024 was $6.08 billion, up 13% year-over-year and 1% sequentially.

• EBITDA margin stood at 34%, up 2 percentage points year-over-year.

• Net income for Q2 2024 was $1.19 billion, a 21% increase year-over-year.

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

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

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.

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

• Positioned to pursue ambitious growth agenda, leveraging UAE market expansion and industrial growth.