ADNOC Gas, the newly listed gas subsidiary of energy giant Abu Dhabi National Oil Company (ADNOC), said Thursday that its adjusted net profit in 2022 climbed 37% to $4.9 billion on a pro forma basis, thanks to better prices and ramped-up volumes that boosted its revenues.
ADNOC Gas’ profitability last year was attributed to higher pro forma adjusted revenue, which stood at $24.7 billion, up 27% or $5.2 billion, from $19.5 billion in 2021, a filing with the Abu Dhabi Securities Exchange (ADX) showed.
The company benefitted from a steady increase in sales volumes, up 3% in 2022, and an improved pricing environment, thanks to positive market conditions.
A year-on-year increase of 32% in its pro forma adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), or core earnings, for the year was buoyed by a strategy to focus on operational efficiencies, according to ADNOC Gas. As a result, pro forma adjusted EBITDA clocked in $8.7 billion in 2022 compared to $6.6 billion a year earlier.
Lower capital expenditure improved ADNOC Gas' free cash flow to $5.2 billion in 2022 compared to $4 billion in the previous year.
ADNOC Gas CEO Ahmed Alebri said the company last year focused on increasing its gas production capacity and driving efficiency across its operations, enabling the gas company to deliver strong growth in pro forma net income, revenues, and sales volumes in 2022.
This is the first financial report of ADNOC Gas since its initial public offering (IPO) earlier this month.
ADNOC Gas has set a target of distributing $3.25 billion of dividend for the current financial year, ending December 31, 2023, and deliver an annual growth rate of 5% over the next four years to 2027.
In November 2022, state-owned ADNOC announced the consolidation of its gas processing and liquified natural gas (LNG) businesses to form a new entity called ADNOC Gas, which became operational at the start of 2023. ADNOC also delivered on its promise to float a minority stake in the newly-formed gas unit on the Abu Dhabi bourse two months later.
Its IPO in early March was met with 50 times oversubscription and raised $2.5 billion, the largest listing in the Middle East and North Africa (MENA) region so far this year. It sold more than 3.8 billion shares or about 5% of the company’s total issued shares.
The gas company aims to achieve a daily gas processing capacity of 10 billion standard cubic feet across its eight onshore and offshore sites and a pipeline network of over 3,250 kilometers.
Last month, the company delivered its first LNG shipment to Germany, carrying a load of 137,000 cubic meters.
