UAE's ADNOC Gas Q2 revenue down 24% on lower prices
DUBAI, Aug 4 (Reuters) - State oil giant Abu Dhabi National Oil Company's gas unit, ADNOC Gas, on Friday reported a 24% decline in revenue for the second quarter from the same period in 2022, citing lower pricing.
ADNOC Gas posted revenue of $5.4 billion in Q2 versus the pro forma adjusted revenue of $7.1 billion in Q2 2022, it said in a statement, adding that Brent prices dropped 31% year-on-year in the same period.
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Second quarter net income fell 29% to $1 billion from $1.4 billion in the prior year period.
ADNOC listed its gas business in March after raising $2.5 billion from an initial public offering (IPO) which drew strong investor appetite amid demand for energy-related assets from the Gulf region.
Net income in the first half of 2023 decreased 12% to $2.3 billion, while revenue in the same period fell to $10.6 billion compared to pro forma adjusted revenue of $13.3 billion in the prior year period.
"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," ADNOC Gas CEO Ahmed Alebri said, amid "the current lower price environment".
"We continue to witness long-term structural demand growth for natural gas as a critical fuel for the responsible global energy transition."
ADNOC has sharpened its focus on the gas market as competition for LNG has ramped up since the Russian invasion of Ukraine in February 2022, with Europe in particular needing large amounts to help replace piped gas from Russia. (Reporting by Rachna Uppal; editing by David Evans)