ADNOC Gas reports $665m Q2 profit despite regional disruptions, raises 2030 growth target to 60%

ADNOC Gas reports $665m Q2 profit despite regional disruptions, raises 2030 growth target to 60%

ADNOC Gas delivered second-quarter net income of $665 million, exceeding its guidance range despite disruptions to operations and shipping routes, while approving a $940 million quarterly dividend and raising its earnings growth target through the end of the decade.

The Abu Dhabi-listed energy company said its Q2 net income surpassed its previously guided range of $400 million to $600 million, supported by resilient margins in its domestic gas business during a challenging operating environment marked by regional conflict and maritime constraints.

The board approved a quarterly dividend of $940 million, payable in September, and reaffirmed plans to increase annual dividends by 5% through 2030.

Recovery exceeds targets after facility damage

ADNOC Gas has accelerated recovery at its Habshan complex following damage from falling debris during air defense interceptions in early April. The facility was struck on April 3 and April 8 by debris from intercepted attacks, with one contractor losing his life and several others injured in the incidents.

Gas supply has been restored to 85% of capacity, exceeding the company's year-end target of 80% and advancing ahead of schedule. Immediately after the April incidents, processing capacity had been brought back to 60%.

Maritime disruption through Strait of Hormuz

Product liftings were affected during the second quarter by disruption to shipping through the Strait of Hormuz, a critical chokepoint through which approximately 25% of global crude oil and petroleum products trade and roughly 19% of liquefied natural gas passed in 2025.

ADNOC Gas used inventory management, logistics adjustments and supply-chain measures to maintain customer commitments where possible during the temporary constraints. The company expects third-quarter net income of between $600 million and $800 million, assuming maritime route disruption continues.

Full-year net income is projected to reach between $3.5 billion and $4 billion if maritime operations are fully restored by the fourth quarter and pricing returns to normal levels.

Regional LNG supply from both Qatar and the UAE declined sharply between March and June 2026, falling by almost 80% compared with the same period in 2025, according to the International Energy Agency. The IEA expects global natural gas demand to contract by 0.5% in 2026 as elevated prices and supply disruptions pressure consumption, marking the third annual decline in global gas demand in seven years.

$28 billion investment plan and raised growth target

ADNOC Gas has increased its targeted EBITDA growth to 60% by 2030 compared with 2023 levels, up from a previous target of more than 40% growth between 2023 and 2029. The revised target assumes a Brent crude oil price of $70 per barrel and will be supported by approximately $28 billion of planned investment between 2026 and 2030.

With the final investment decision and contract awards for the Rich Gas Development Project, we are not only accelerating one of the world's largest gas-processing growth programs — we are raising our ambition, targeting 60% EBITDA growth by 2030. These strategic investments will significantly expand our natural gas processing and export capacity, unlock lasting value for our shareholders, and position ADNOC Gas at the heart of the UAE's energy future.

Fatema Al Nuaimi, CEO of ADNOC Gas

$13.2 billion Rich Gas Development project advances

ADNOC Gas has taken final investment decisions on Phases 2 and 3 of its Rich Gas Development project and awarded engineering, procurement and construction contracts worth a combined $8.2 billion.

Wison Engineering received a $3.9 billion contract for Phase 2, while Tecnimont was awarded a $4.3 billion contract for Phase 3. Combined with the $5 billion committed to Phase 1, announced in June 2025, total investment in the Rich Gas Development project has reached $13.2 billion.

Phase 1 covers upgrades at Asab, Bu Hasa, Habshan and Das Island facilities to increase throughput and improve operational efficiency. Phase 2 will add a new natural gas processing train at the Habshan facility, increasing processing capacity and supporting the UAE's downstream and petrochemical sectors.

Phase 3 will add a fifth natural gas liquids fractionation unit at Ruwais, which will separate hydrocarbon components and include treatment and sweetening systems to remove impurities, a regeneration gas treatment unit, propane refrigeration system, ancillary systems and storage facilities. The expansion will increase recovery of higher-value liquids from rich natural gas for export.

The Rich Gas Development project is part of a broader growth programme that includes Ruwais LNG, Maximizing Ethane Recovery and Monetization (MERAM), and Estidama. Together, the four megaprojects are expected to generate $13.4 billion in In-Country Value. MERAM is expected to be delivered in 2027, while Ruwais LNG and Estidama are progressing according to plan.

Technology deployment to reduce costs

ADNOC Gas is expanding the use of artificial intelligence and robotics across its operations, including drones, four-legged inspection robots and tank-climbing crawlers. The company said the technologies have the potential to reduce inspection costs by up to 75% and complete some inspections up to 15 times faster, while limiting the need for personnel to enter hazardous environments.