ADNOC Gas delivers $665m net income in 2026 Q2

ADNOC Gas plc on Monday announced its results for the second quarter of 2026, delivering net income of $665 million, above the guidance range of $400-600 million, despite exceptional external disruption during the period.

The Company achieved a significant milestone in executing its long-term growth strategy by taking Final Investment Decisions (FIDs) and awarding engineering, procurement and construction (EPC) contracts for Phases 2 and 3 of its Rich Gas Development (RGD) Project (collectively, the "Contract Awards").

Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said, "This is a defining moment for ADNOC Gas. 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 percent 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. Beyond their economic impact, they safeguard the nation's energy security, power its industrial growth, and ensure we are ready to meet rising energy demand - at home and around the world.

At the same time, ADNOC Gas delivered resilient second-quarter net income above our guided range, despite a challenging operating environment, reflecting the strength of our business, the discipline of our execution, and the continued delivery of our long-term strategy."

These investment decisions raise ADNOC Gas' targeted EBITDA growth to 60 percent by 2030 versus 2023 - an upgrade from the previously communicated target of more than 40 percent over 2023-2029. The upgrade reflects the long-term value creation of the Company's project portfolio and its disciplined approach to capital allocation. ADNOC Gas now expects to invest approximately $28 billion between 2026 and 2030 to deliver this growth ambition.

ADNOC Gas has awarded $8.2 billion in EPC contracts for Phases 2 and 3 of the RGD project - $3.9 billion for Phase 2, to Wison Engineering, and $4.3 billion for Phase 3, to Tecnimont. These contracts build on Phase 1, announced in June 2025, which is expanding key processing units to increase throughput and improve operational efficiency, across multiple gas assets.

Phase 2, to be delivered by Wison Engineering, will add a new natural gas processing train at the Habshan facility, expanding ADNOC Gas' natural gas processing capacity, enhancing operational flexibility, and supporting the UAE's expanding downstream and petrochemical sectors. Phase 3, to be delivered by Tecnimont, will add a new natural gas liquids (NGL) fractionation train at Ruwais, increasing the recovery of higher-value liquids from rich natural gas for export, strengthening ADNOC Gas' global customer portfolio.

Together with the $5 billion committed to Phase 1, the new awards bring total investment in the RGD project to $13.2 billion. It will benefit from higher associated gas volumes as ADNOC progresses towards its production capacity ambitions.

ADNOC Gas is executing one of the largest gas growth programs in the industry, spanning four megaprojects - Ruwais LNG, Maximising Ethane Recovery and Monetisation (MERAM), RGD and Estidama - which together are expected to generate $13.4 billion in In-Country Value (ICV), reinforcing the Company's contribution to the UAE's industrial development and economic diversification goals. The program continues to progress, with MERAM expected delivery in 2027 and Ruwais LNG and Estidama both advancing as planned. This growth is further underpinned by ADNOC's continued investment across the gas value chain - including the recently announced Bab Gas Cap and Umm Shaif Gas Cap developments - which will bring more natural gas and associated gas liquids into ADNOC Gas' integrated value chain, supporting additional feedstock, processing volumes, LNG exports and higher revenue streams.

ADNOC Gas is also scaling artificial intelligence and robotics - from aerial drones and four-legged inspection robots to tank-climbing crawlers - across its assets, with the potential to cut inspection costs by up to 75 percent, complete certain inspections up to 15 times faster and remove personnel from hazardous environments as it advances toward increasingly autonomous operations.

ADNOC Gas delivered net income of $665 million in Q2 2026 - above the upper end of the $400-600 million guidance range provided in the first quarter, reflecting strong operational performance in a challenging operating environment. This was supported by resilient margins in the domestic gas business.

Supported by its robust cash flow from operations, the Board has approved a quarterly dividend of $940 million, payable in September 2026, in line with the commitment to deliver annual dividend growth of 5 percent through 2030. ADNOC Gas remains the largest dividend payer on the ADX.

ADNOC Gas responded swiftly to the security-related incidents at the Habshan site on 3rd and 8th April, prioritising safety and minimising disruptions to customers. The Company has concluded its technical assessment of the impact from these incidents and recovery has progressed ahead of schedule, with gas supply already restored to 85 percent, surpassing the year-end target set in May.

Continued disruption to maritime movements through the Strait of Hormuz affected product liftings during the second quarter. Through proactive inventory, logistics and supply-chain management, ADNOC Gas worked closely with customers and partners to mitigate the impact of these disruptions, manage temporary constraints and fulfil commitments wherever possible.

For the third quarter, ADNOC Gas expects net income in the range of $600 to $800 million, based on the assumption that maritime routes through the Strait of Hormuz continue to be disrupted. Looking further ahead, if maritime operations are fully restored by the fourth quarter of 2026 and pricing realizations normalise, the Company expects full-year 2026 net income to range from $3.5 to $4 billion.

WAM