Abu Dhabi – Mubasher: ADNOC Gas recorded net income amounting to $1.30 billion during the first quarter (Q1) of 2023, versus pro-forma adjusted net income valued at $1.20 billion in Q1-22.

The Q1-23 net income included a $300 million benefit from recognising a deferred tax asset, a non-reoccurring item, following the formation of the UAE company, according to a press release.

Free cash flow hit $1.10 billion during Q1-23 compared to an illustrative free cash flow worth $1.40 billion in Q1-22.

In the first three months (3M) of 2023, the revenue reached $5.20 billion, compared to pro-forma adjusted revenue of $6.20 billion in the year-ago period, impacted by the pricing environment.

ADNOC Gas noted that the Q1-23 income statements are the group’s first quarterly financial results since its formation and initial public offering (IPO).

Ahmed Alebri, CEO of ADNOC Gas, commented: “ADNOC Gas has delivered robust financial results during Q1-23, despite a significant contraction in market prices from the near-all-time highs experienced during 2022.”

“Importantly, we continue to execute on the growth strategy communicated during our IPO, underpinned by anticipated upstream capacity expansion and product mix optimisation. We see long-term structural demand growth for natural gas as a critical fuel in the responsible,” Alebri highlighted.

Dividends

ADNOC Gas is targeting to pay cash dividends worth $1.62 billion in Q4-23 in respect of the first half (H1) of 2023. A further $1.62 billion dividend is planned to be distributed in Q2-24 in respect of H2-23.

Thereafter, ADNOC Gas expects to grow the annual target dividend amount from $3.25 billion by a growth rate of 5% per annum on a dividend-per-share basis over the period from 2024 to 2027.

Earlier this month, the ADX-listed firm penned a liquefied natural gas (LNG) supply agreement with TotalEnergies Gas and Power Limited, a unit of French multinational energy company TotalEnergies.