ADNOC Gas Achieves $1.1 Billion Profit Amidst Hormuz Challenges

Post by : Bianca Suleiman

ADNOC Gas has declared a net profit of $1.1 billion for the initial quarter of 2026, attributing this success to strong operational efficiency and financial stability, despite regional disruptions affecting export logistics.

The firm confirmed that it met local customer needs throughout the UAE while effectively managing logistics and supply chain hurdles during maritime interruptions in the Strait of Hormuz.

CEO Fatema Al Nuaimi emphasized the company’s commitment to safeguarding both staff and operational assets, ensuring a secure gas supply domestically, while enhancing shareholder value through prudent management during this tumultuous period.

In Q1 2026, ADNOC Gas generated $572 million in free cash flow and concluded the quarter with $4.2 billion in cash reserves, underscoring the robustness of its financial position.

The Board sanctioned a quarterly dividend of $941 million, expected to be issued in June 2026, and reiterated its goal of a 5 percent annual dividend increase until 2030.

ADNOC Gas reaffirmed its long-term growth ambitions, aiming to boost EBITDA by over 40 percent from 2023 to 2029.

The company expresses optimism regarding economic advancement in the UAE, driven by a surge in industrial activity and rising domestic energy needs. Significant projects include the TA’ZIZ $5 billion supply deal, alongside ADNOC’s $55 billion investment in local manufacturing as part of the “Make it in the Emirates” strategy.

As the UAE’s primary gas supplier for power generation and industrial applications, ADNOC Gas foresees persistent demand increases from domestic consumers.

In the same quarter, the company noted two security incidents at its Habshan facility on April 3 and 8. ADNOC Gas activated its emergency protocols promptly to mitigate any disruptions.

Approximately 60 percent of the processing capability at Habshan was restored swiftly, with plans to achieve 80 percent by late 2026 and full operations anticipated by 2027.

ADNOC Gas informed that a thorough technical review of the incidents is in progress while navigating a challenging supply chain landscape.

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