Adnoc Gas Boosts 2026 Net Income Target to $4 Billion Amidst Q3 Profit Surge

Adnoc Gas has revised its financial outlook, projecting a minimum net income of $4 billion for the full year 2026. This upward revision follows a notable improvement in the company's third-quarter earnings compared to the preceding quarter, despite ongoing disruptions attributed to regional conflicts impacting maritime routes.

For the three months concluding in September, Adnoc Gas reported a net income of $1.33 billion. While this figure remained stable on an annual basis, it represented a significant increase, nearly doubling from the $664.6 million recorded in the second quarter, as detailed in a statement to the Abu Dhabi Securities Exchange.

Revenue for the third quarter saw a decrease of nearly 10% year-on-year, amounting to $4.38 billion. The company's CEO highlighted the continued long-term demand for Liquefied Natural Gas (LNG).

Fatema Al Nuaimi, Chief Executive of Adnoc Gas, commented, "Although market conditions improved during the third quarter, ongoing disruption to maritime movements through the Strait of Hormuz continued to create a challenging operating environment." She further explained that prolonged maritime disruptions in the strait have constrained exports of liquefied petroleum gas, naphtha, and LNG. "Our operational strength and commercial agility enabled us to safely and reliably meet domestic and international demand and drive strong financial results despite continued challenging external conditions," Al Nuaimi added.

The updated full-year 2026 net income guidance of at least $4 billion surpasses the previously estimated range of $3.5 billion to $4 billion. Adnoc Gas noted, "Our outlook remains subject to developments in regional maritime conditions, which we continue to monitor closely."

Domestic gas sales volumes experienced a year-on-year decline of 19% to 513 trillion British thermal units (Tbtu) in the third quarter, attributed to reduced reinjection gas and ethane offtake. Sales gas volumes, however, remained largely consistent year-on-year. Adnoc Gas plays a crucial role in supplying approximately 60% of the UAE's gas requirements and serves customers in over 20 countries.

Export and traded liquids sales volumes decreased by 28% annually but surged by 69% on a quarterly basis, primarily due to enhanced shipping activities. Despite higher gas and naphtha prices, the company stated that "continued disruption constrained the company's ability to lift and export its liquids and LNG cargoes, limiting its capacity to fully capture these higher market prices during the quarter."

The article also references the impact of regional conflicts on oil and gas prices and maritime security, particularly concerning the Strait of Hormuz. It mentions past incidents at the Habshan gas processing site, including damage and operational suspensions, and notes that restoration efforts are progressing as planned, with full capacity expected by the second quarter of 2027.

Adnoc Gas continues to advance its long-term growth strategy, including significant capital investments in projects like the Rich Gas Development, which involves an $8.2 billion EPC contract award for its second and third phases. This multi-phase program represents a $13.2 billion investment aimed at expanding gas processing and liquid recovery infrastructure across the UAE. Additionally, the company is pursuing other key projects—Ruwais LNG, Maximizing ethane recovery and monetisation, and Estidama—expected to generate substantial In-Country Value. The company's expansion program targets a 60% Ebitda growth by 2030 compared to 2023, with planned investments of approximately $28 billion between 2026 and 2030.

Further strategic initiatives include plans to supply natural gas to the Northern Emirates for new power generation capacity and a recent five-year agreement to supply up to 1.6 million tonnes of LNG to TotalEnergies.