Home Industry Energy ADNOC Gas’ H1 2023 net income plunges to $2.3bn Brent crude oil prices, which are used for gas pricing, decreased by nearly 31 per cent during the period under review by Kudakwashe Muzoriwa August 6, 2023 Image credit: Christopher Pike/ Getty Images UAE’s ADNOC Gas said its half-year income plunged by 12 per cent year-on-year (YoY) to $2.3bn (Dhs8.4bn) from $2.6bn a year ago due to lower pricing. The company said its H1 2023 net income includes a non-recurring item of $298m from recognizing a deferred tax asset following the formation of ADNOC Gas. Revenues in the six months to June 30 dropped by 20 per cent to $10.6bn, compared to pro forma adjusted revenue of $13.3bn for H1 2022, impacted by the pricing environment. Brent crude oil prices, which are used for gas pricing, decreased by nearly 31 per cent during the period under review. Second quarter revenue decreased by 24 per cent to $5.4bn versus the pro forma adjusted revenue of $7.1bn in Q2 2022. However, despite a plunge in revenues, the impact was largely offset by the reduction of feedstock costs, which fell by $1.8bn and a reduction in taxes by $782m. The company’s long-term gas supply agreement provides reliable access to production from ADNOC’s upstream operations. ADNOC Gas announced its financial results for the first half of 2023 with a net income of $2.3 Billion. — ADNOC Group (@ADNOCGroup) August 5, 2023 ADNOC Gas’ earnings before interests, taxes, depreciation and amortisation (EBITDA) reached $3.5bn in the first half of the year, down 22 per cent YoY compared to the same period a year earlier. The company’s share of liquefied natural gas (LNG) EBITDA reduced from $709m to $490m YoY, owing to the price environment and lower volumes due to planned shutdowns. “This performance demonstrates the strength of our business, which was also supported by selling more high-margin export liquids – a strategy that has proven effective,” said Ahmed Alebri, CEO of ADNOC Gas. “We continue to witness long-term structural demand growth for natural gas as a critical fuel for the responsible global energy transition. ADNOC Gas remains fully committed to investing in our people, operations, and markets, and we have continued to invest in our strategic growth opportunities throughout the first half of 2023.” ADNOC Gas invests in growth ADNOC Gas continues to capitalise on growing global demand for natural gas, as the company continues to grow its export business. The company awarded $1.34bn in contracts to Petrofac Emirates and a consortium led by the National Petroleum Construction Company and C.A.T International for the expansion of its natural gas pipeline network in July. In July, the Abu Dhabi-listed firm has signed a 14-year supply agreement with Indian Oil Corporation (IOC) for the export of up to 1.2 million metric tonnes per annum of LNG per year. The company also delivered the first-ever LNG cargo to be shipped to Germany from the Middle East in February. It also signed a three-year agreement with TotalEnergies in May for the export of LNG from 2023 to 2025, cementing the company’s position as a reliable global supplier of natural gas. ADNOC Gas was established in December 2022, following the merger of ADNOC Group’s gas processing and LNG operations into one of the world and market’s leading consolidated businesses effective January 1, 2023. The company listed on the Abu Dhabi Securities Exchange in March after raising $2.5bn from an initial public offering. Read: ADNOC Gas agrees $7-9bn 14-year LNG deal with India Tags ADNOC Gas ADNOC Group energy LNG revenues 0 Comments You might also like Oil jumps over 2% amid further Red Sea vessel attacks Angola leaves OPEC in blow to oil producer group Mubadala Energy boosts Indonesia exposure with major gas discovery ADNOC to buy OCI stake in Fertiglobe for $3.62bn