ADNOC Gas Posts Record Q3 Profit as Domestic Demand and Margins Drive Growth

Core Insights - ADNOC Gas reported its strongest-ever third-quarter profit, highlighting resilient earnings and increasing domestic gas demand despite a softer oil price environment [1] - The company achieved a record Q3 net income of $1.34 billion, an 8% year-on-year increase, with year-to-date earnings reaching $3.99 billion, a 10% increase from 2024 [2] - ADNOC Gas has established itself as a stable cash generator in the UAE, supplying around 60% of the country's natural gas needs and benefiting from long-term contracts and margin improvements [3] Financial Performance - Q3 net income was $1.34 billion, up 8% year-on-year [2] - Year-to-date earnings climbed to $3.99 billion, a 10% increase from 2024 [2] - Quarterly domestic EBITDA reached $914 million, reflecting a 26% increase [2] - Domestic gas sales rose by 4% in the first nine months [6] Shareholder Returns - ADNOC Gas introduced quarterly dividend payments starting with Q3 2025, with an inaugural payout of $896 million scheduled for December 12 [4] - The company extended its 5% annual dividend growth commitment through 2030, aiming to attract income-focused investors [4][5] Market Position and Strategy - ADNOC Gas benefits from a strong cash flow profile, allowing it to fund shareholder distributions and expansion projects without increasing leverage [5] - The company’s business model is insulated from crude oil price volatility, with oil prices averaging $71/bbl in the first nine months of 2025 [3] - Management expressed confidence in ADNOC Gas's stable, high-return potential as the UAE expands industrial output and gas-intensive manufacturing [6]