UAE's ADNOC Gas Q3 profit slips 4% on lower prices
DUBAI, Nov 14 (Reuters) - State oil giant Abu Dhabi National Oil Company's gas unit, ADNOC Gas, said on Tuesday its third-quarter net profit fell 4% from the corresponding period a year earlier, as lower prices were partly offset by higher volumes.
ADNOC Gas reported $1.116 billion in net profit in the quarter ending Sept. 30. That beat three analysts' mean estimate of $1.099 billion, according to LSEG data.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
Revenue dropped 12% in the third quarter to $5.8 billion from the previous year.
Revenue was hit by "a less favourable pricing environment" but feedstock cost declined 11% to $3.466 billion, "benefiting from the Gas Supply and Payment Agreement (GSPA) with ADNOC Upstream," ADNOC Gas said.
ADNOC Gas "expects to gradually increase leverage to fund growth capex requirements," it said in a results presentation.
Capital expenditure rose 80% year-on-year in the third quarter to $347 million, driven by growth projects including one to supply higher volumes of natural gas to customers in the Northern Emirates of the UAE and another to maximize ethane recovery.
It said it expects its growth capital expenditure to be $14 billion between this year and 2028, peaking in 2025-2026. It expects growth capex for its liquefied natural gas (LNG) joint venture (JV) at $2 billion over that period.
Maintenance capex is expected at $300 million to $400 million a year, plus $50 million a year for the LNG JV.
ADNOC Gas will pay $1.625 billion to shareholders in the fourth quarter and the same amount in the second quarter of next year. It aims to boost its dividend by 5% a year between next year and 2027.
(Reporting by Yousef Saba; editing by David Evans)