ADNOC Gas reported a 52% decline in second-quarter profit to $665 million compared to $1.39 billion in the same period last year, according to Reuters. The Abu Dhabi state-owned company's sales dropped significantly due to the closure of the Strait of Hormuz after the U.S. and Israel launched attacks on Iran. The Middle East conflict has hurt oil-rich Gulf countries as Iran has attacked their energy infrastructure and oil tankers while also blocking shipping in the Strait of Hormuz, which previously carried a fifth of the world's oil and liquefied natural gas. ADNOC, the parent company, said on Friday that it was feeling significant impact from what it described as unprovoked attacks on its people and assets, with one of its tankers attacked in Hormuz as recently as Saturday. Second-quarter results were affected by security-related incidents at the Habshan complex on April 3 and April 8 and by disruptions to maritime traffic through the Strait of Hormuz, as reported by ADNOC Gas. However, the company's net income for the second quarter beat the average analyst estimate, demonstrating operational resilience despite challenging conditions.
Despite the challenging operating environment, ADNOC Gas delivered second-quarter profit above its guidance range of $400 million to $600 million, as reported by Reuters. The company stated that third-quarter profit would likely be in the $600 million to $800 million range, based on the assumption that maritime routes through the Strait of Hormuz continue to be disrupted. Gas supply from Habshan has already recovered to 85%, ahead of a year-end recovery target announced in May, according to ADNOC Gas. CFO Peter van Driel revealed that $1 billion of the company's $1.7 billion of first-half net profit came from local clients, with the listed company relying on its domestic market to sustain profits. "The majority of the profit comes from domestic markets; that is really the backbone of our operational results," van Driel said. The company's net income for the second quarter beat the average analyst estimate, indicating strong domestic demand and operational efficiency. ADNOC Gas now expects the Habshan plant to reach full capacity by early 2027, representing a significant acceleration from previous recovery timelines.
During the quarter, ADNOC Gas awarded $8.2 billion in engineering, procurement and construction contracts for the second and third phases of its Rich Gas Development project, according to Reuters. In 2025, the company had awarded $5 billion in contracts for the first phase of the RGD Project. The latest awards include China's Wison Engineering receiving a $3.9 billion contract for Phase 2, which will add a natural gas processing train at the Habshan complex, and Italy's Tecnimont awarded a $4.3 billion Phase 3 contract to build a new natural gas liquids fractionation train at Ruwais. Including $5 billion committed to Phase 1 in June 2025, total investment in the Rich Gas Development project has reached $13.2 billion. The expansion is designed to accommodate rising associated gas supplies as parent company ADNOC increases upstream production capacity, with additional volumes expected from developments including the Bab Gas Cap and Umm Shaif Gas Cap projects.
ADNOC Gas announced plans to expand oil and gas sales and expects to invest about $28 billion between 2026 and 2030 to deliver growth, as reported by Reuters. The company's strategic focus remains on expanding its domestic gas processing capacity and boosting export-traded liquid recovery capabilities through its Rich Gas Development project phases. The investments form part of a broader expansion program that ADNOC Gas now expects will increase EBITDA by around 60% by 2030 compared with 2023 levels, with the company previously targeting growth of more than 40% between 2023 and 2029. CEO Fatema Al Nuaimi told a press briefing that the company was looking at different options while monitoring the situation in the Strait of Hormuz, stating "We cannot be in this environment and not look at alternatives." The company's net income for the second quarter beat the average analyst estimate, demonstrating strong execution capabilities despite geopolitical challenges.
ADNOC Gas remains the largest dividend payer on the Abu Dhabi Securities Exchange (ADX) and recently approved a quarterly dividend of $940 million, payable in September 2026, in line with its commitment to deliver annual dividend growth of 5% through 2030. The company is expanding its gas production with the construction of four megaprojects, including Ruwais LNG, Maximizing Ethane Recovery and Monetization (MERAM), Rich Gas Development (RGD) and Estidama, which are expected to generate $13.4 billion in In-Country Value (ICV). MERAM is expected to be delivered by 2027, while Ruwais LNG and Estidama both advancing as planned, with other projects like the recently announced Bab Gas Cap and Umm Shaif Gas Cap developments expected to further increase gas production, processing volumes, LNG exports and higher revenue streams.
