Adnoc Gas, EMSTEEL sign natural gas supply agreement worth $4b

Adnoc Gas and its subsidiaries on Wednesday signed a landmark $4 billion agreement, valued between $3.5 and $4.2 billion, with EMSTEEL, one of the region’s largest integrated steel and building materials manufacturers.

The 20-year agreement, effective 1st January 2027, secures a stable and reliable supply of lower-carbon natural gas to power EMSTEEL’s operations and future growth.

This milestone reinforces the long-standing partnership between Adnoc Gas and EMSTEEL and demonstrates both companies’ commitment to driving sustainable economic growth in the UAE.

The agreement not only secures a dependable energy supply for one of the country’s leading industrial producers but also strengthens Adnoc Gas’ competitive position as a key enabler of industrial resilience and cleaner energy transition.

“This landmark agreement to supply EMSTEEL with lower-carbon natural gas underpins Adnoc Gas’ role in boosting the UAE’s industrial growth and economic development. We remain firmly committed to delivering reliable, lower-carbon energy that powers national industries, drives value creation, and helps secure the UAE’s long-term prosperity,” said Fatema Al Nuaimi, Chief Executive Officer of Adnoc Gas.

Engineer Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, said, “This strategic partnership not only ensures a secure and sustainable energy supply for our operations but also reinforces our shared commitment to maximising In-Country Value and supporting national economic resilience. With Adnoc Gas as a key energy partner, EMSTEEL will continue advancing green steel production, enhancing efficiency across our value chain, and contributing to the sustainable growth of the nation’s industrial ecosystem.”

In clear recognition of Adnoc Gas’ strategic importance, the Adnoc Board of Directors selected Habshan, one of its most critical operational sites, to hold its annual meeting last Monday. The decision underscores the vital contribution of Adnoc Gas to the UAE’s energy security, industrial resilience, and global standing as a responsible and dependable energy provider.

The Board’s presence at Habshan reflects strong confidence in the company’s direction, its people, and its growing contribution to the national economy.

Meanwhile Adnoc Group’s listed portfolio companies have reported record financial results for the third quarter and first nine months of 2025, reflecting continued strategic execution, operational excellence, and a firm commitment to delivering long-term value to shareholders. The performance highlights Adnoc’s integrated approach to growth across its energy and industrial platforms.

Collectively, Adnoc’s publicly traded portfolio companies delivered over $2.67 billion (Dhs9.43 billion) in net profit for the third quarter of 2025, underscoring their resilient business models and ability to generate robust returns in evolving market conditions.

Adnoc Distribution delivered record results for the third quarter and first nine months of 2025, with Q3 EBITDA rising 15.9% year-on-year to $319 million (Dhs1.17 billion) and net profit increasing 21.5% to $221 million (Dhs811 million). Nine-month EBITDA reached $885 million (Dhs3.25 billion), up 12.0%, while net profit grew 15.6% to $579 million (AED2.13 billion), supported by strong fuel volumes and continued growth in non-fuel retail. The Company added 85 new stations, raising its full-year target to 90-100, with significant expansion in Saudi Arabia.

Looking ahead, Adnoc Distribution is accelerating its growth strategy through expanded regional presence, enhanced AI-powered operations, and a refreshed non-fuel retail offering.

The Company has proposed extending its dividend policy to 2030, with quarterly distributions starting from Q1 2026, reinforcing its commitment to long-term shareholder value.

Adnoc Drilling delivered record results for the first nine months of 2025, with revenue rising 27% to $3.63 billion (Dhs13.33 billion), net profit increasing 17% to $1.06 billion (Dhs3.90 billion) and free cash flow surging 174% to $1.2 billion (DhsD4.41 billion). The Board approved a $250 million Q3 2025 dividend, and the company introduced an enhanced dividend policy targeting $6.8 billion in distributions through 2030, reinforcing its commitment to long-term shareholder value.

Looking ahead, Adnoc Drilling is accelerating its growth strategy through planned expanded unconventional drilling and a larger Integrated Drilling Services (IDS) fleet. These initiatives reinforce the company’s position as a key enabler of Adnoc’s upstream ambitions and a driver of future energy security for the UAE.

Borouge posted a 52% quarter-on-quarter increase in net profit to $295 million (Dhs1.08 billion) in Q3 2025, driven by record production, strong sales, and disciplined cost control. Adjusted EBITDA rose to $565 million (Dhs2.07 billion), with a leading margin of 39%, while the company reaffirmed its FY2025 dividend intention of 16.2 fils per share, with the H2 payout expected in April 2026.

WAM