ADNOC Gas

1. Company Overview & Earnings Context

ADNOC Gas plc reported its Q1 2026 results, delivering a resilient performance despite significant geopolitical disruptions, particularly impacting exports through the Strait of Hormuz.

2. Financial Performance Snapshot

• Revenue: AED ~18.4B ($5.0B) (−18% YoY)

• EBITDA: AED ~6.7B ($1.8B) (−15% YoY)

• EBITDA Margin: ~36%

• Net Profit: AED ~4.0B ($1.08B) (−15% YoY)

• Free Cash Flow: AED ~2.1B ($572M)

3. Operational Highlights & Key Metrics

• Strong operational reliability: 98.1% asset reliability

• Sales volumes declined due to disruptions:

• Domestic gas: 519 TBTU (−11% YoY)

• Export & traded liquids: 202 TBTU (−20% YoY)

• Margins remained stable despite challenges:

• EBITDA margin: ~36%

• Net income margin: ~22%

• Balance sheet strength:

• Cash position: $4.2B (~AED 15.4B)

• Quarterly dividend approved: $941M (~AED 3.45B)

4. Key Performance Drivers

• Strait of Hormuz disruption impacting export volumes and logistics

• Lower LNG & LPG prices, partially offset by higher Brent crude prices

• Strong domestic demand in UAE, supporting base earnings

• Operational efficiency & cost discipline, maintaining margins

• Supply chain and inventory management, ensuring continuity

5. Outlook & Forward Guidance

• Q2 2026 net income expected:

• Between $400M – $600M (~AED 1.5B – 2.2B)

• Full-year 2026 net income guidance:

• $3.5B – $4.0B (~AED 12.9B – 14.7B)

• Long-term growth:

• Targeting 40%+ EBITDA growth by 2029

• Strategic focus:

• Expanding gas processing capacity

• Leveraging UAE industrial growth

• Executing major projects like Rich Gas Development

6. 🧾 Investor Takeaway

ADNOC Gas delivered a resilient Q1 2026 despite revenue and profit pressure, supported by strong domestic demand, operational reliability, and a robust balance sheet, while near-term performance remains sensitive to geopolitical disruptions and export constraints.