Adnoc Gas posts record $5.2bn net earnings

ADNOC Gas plc reported a net income of $5.2 billion for the fiscal year ended 2025, marking a 3 per cent rise compared with the previous year and underscoring the company’s capacity to generate resilient returns amid volatile commodity markets. The Abu Dhabi-based integrated gas producer said the result was achieved despite an average Brent crude oil price of $69 per barrel for the period, down 14 per cent year-on-year, highlighting the strength of its business model and growing domestic demand.

Chief Executive Officer Fatema Al Nuaimi described 2025 as a defining year for ADNOC Gas, emphasising the firm’s disciplined execution of its long-term strategy and commitment to growth. She said the company remains “strategically positioned to serve both the UAE and international markets with confidence and discipline,” reflecting sustained energy needs both at home and abroad.

The bulk of the earnings growth was driven by the domestic gas segment, where earnings before interest, tax, depreciation and amortisation rose by around 10 per cent. This momentum was underpinned by a 4 per cent increase in domestic sales volumes and improved commercial terms that enhanced profitability. Domestic gas sales helped offset weaker conditions in export markets, with full-year export revenue declining marginally amid softer pricing.

The company also reported that its capital expenditure surged to $3.6 billion in 2025, reflecting intensified investment in strategic infrastructure projects designed to expand capacity and support future growth. Among these, the ADNOC Estidama gas pipeline project, which aims to improve gas access in the Northern Emirates, and the Rich Gas Development initiative stand out as critical to scaling up production and reinforcing energy security objectives. Final investment decisions for RGD phases 2 and 3 are expected in the first quarter of 2026, with an aim to boost overall capacity by roughly 30 per cent by 2029.

ADNOC Gas’s performance in the final quarter of 2025 included a net income of $1.2 billion, supported by a 5 per cent uplift in sales volumes compared with the same quarter in 2024, despite pressures on export market pricing. Domestic gas demand remained steady as weather conditions in the UAE were milder, contributing to sustained consumption by industrial and utility sectors. EBITDA for the fourth quarter was up about 6 per cent year-on-year, further illustrating the company’s operational resilience.

Dividend policy continued to be a focal point for shareholders, with the board confirming a total payout of $3.584 billion for 2025. This included an interim and quarterly distributions totalling more than $3 billion already disbursed, with a final dividend scheduled for payment pending approval at the company’s annual general meeting. The dividend framework reflects ADNOC Gas’s ongoing commitment to return cash to investors while balancing reinvestment into growth initiatives.

Earlier financial reports from the company show a pattern of strengthening quarterly results throughout 2025, with EBITDA increases and net income growth enhancing investor confidence. For example, third-quarter figures saw net income of $1.34 billion with the domestic gas business posting strong margins and volume gains, contributing significantly to the year-to-date performance. These interim results helped lay the groundwork for the full-year outcome and reinforced the company’s strategic direction.

Market analysts have noted that ADNOC Gas’s diversified revenue streams, anchored by domestic sales and bolstered by export and trading operations, have provided buffers against fluctuations in crude oil prices. The company, which supplies around 60 per cent of the UAE’s sales gas demand and exports to over 20 international markets, has also leveraged contractual renegotiations and operational efficiencies to fortify margins.