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, strong export and LNG volumes, and robust asset reliability at 99.5%.

• Revenue for the first nine months of 2024 rose 11.8% year-over-year to $18,368 million, with net income up 18% to $3,621 million, reflecting strong operational performance and cost optimization.

• EBITDA for Q3 2024 increased 18% year-over-year to $2.20 billion, with a margin of 35%.

• 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.

• Sales volumes rose 5% sequentially and were flat year-over-year, with 99.5% operational reliability and zero recordable injuries.

Financial highlights

• 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.

• EBITDA for the nine months reached $6,367 million, up 18% year-over-year, with a margin of 35%.

• Q3 2024 sales volumes reached 949 TBTU, up 4.5% for the first nine months compared to the prior year.

• Capital expenditure for the nine months totaled $1,322 million, up 77% year-over-year, mainly for growth projects.

• Net cash generated from operating activities for the nine months was $4,245 million, up 10% 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.

• Growth investments of $15 billion planned through 2029, targeting over 40% EBITDA growth by 2029 even at $70/bbl crude.

• Focus remains on three major projects: MERAM, IGD-E2, and Ruwais LNG, expected to increase gas and liquids processing capacity by ~30% by 2029.

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