ADNOC Gas (ADNOCGAS) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income reached $1.24 billion, up 11% year-over-year, driven by higher LPG prices and strong export and LNG volumes.

• The report covers the nine-month period ended 30 September 2024, with financials reviewed by Deloitte, who found no material misstatements.

• The Group operates as a single segment focused on gas business activities in the UAE.

• Major reorganisation and IPO occurred in 2023, with ADNOC retaining majority ownership.

Financial highlights

• Revenue for the nine months was $14.29 billion, up from $12.93 billion year-over-year.

• Net income for the first nine months of 2024 grew 18% year-over-year to $3.62 billion, supported by positive price and volume effects.

• Operating profit was $4.91 billion, up from $4.20 billion year-over-year.

• Free cash flow for Q3 was $1.18 billion, down 9% year-over-year due to increased growth capex; 9-month free cash flow totaled $3.37 billion.

• Basic and diluted EPS was $0.047, slightly down from $0.048 year-over-year.

Outlook and guidance

• 2024 updated guidance: EBITDA margin expected at 34-35%; lower Q4 volumes anticipated due to planned shutdowns.

• Full-year sales volume guidance adjusted to 2,240-2,290 TBTU for domestic gas, 970-990 TBTU for exports and traded liquids, and 250-270 TBTU for LNG JV products.

• Net profit unit margins for LNG JV products revised upward to $1.80-1.90/MMBTU.

• No seasonality impact noted; results for the period are not necessarily indicative of full-year performance.