Adnoc Gas quarterly profit jumps 24% to $1.35bn amid higher sales

Adnoc Gas, the integrated gas processing unit of Adnoc, reported a 24 per cent jump in its fourth-quarter profit as the company sold larger volumes of natural gas and other commodities amid higher prices.

The company’s net income rose to $1.35 billion in the three months that ended in December, it said in a filing to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue rose to $6.3 billion in the quarter from $5.89 billion in the same period a year ago. “Adnoc Gas delivered a strong set of results in 2023, overcoming a challenging market environment in the first half of the year,” said Ahmed Alebri, its chief executive.

“Adnoc Gas sustained its strong sales momentum during the year, signing new liquefied natural gas supply agreements valued between $9 billion and $12 billion, capitalising on the growing global demand for LNG as a transitional fuel.”

The company’s domestic gas production volumes climbed 6 per cent annually to 596 trillion British thermal units (tbtu) in the fourth quarter, while the volume of exported and traded liquids increased by more than 3 per cent to 260 tbtu.

Adnoc Gas’ share of LNG production volumes improved to 64 tbtu from 45 tbtu.

Brent crude, the benchmark for two thirds of the world’s oil, was 6 per cent lower in 2023’s final quarter compared with a year ago, while Asian spot LNG prices declined by 61 per cent during the same period.

Adnoc Gas’s 2023 full-year net income dipped 2 per cent to $4.72 billion, while revenue declined by 12 per cent to $22.73 billion.