ADNOC Gas Posts Strong Q2 Earnings, Secures $8.2 Billion Contracts for Rich Gas Expansion

In a week of resilience and ambition, ADNOC Gas announced second‑quarter results that beat expectations and secured multi‑billion‑dollar contracts for its Rich Gas Development (RGD) project. The company reported a net income of $665 million, comfortably above its guidance range of $400 million to $600 million, even as shipping disruptions through the Strait of Hormuz and other operational challenges rattled the sector.

The earnings beat came hand‑in‑hand with the final investment decisions for Phases 2 and 3 of RGD. Engineering, procurement and construction contracts worth $8.2 billion were awarded: Wison Engineering received $3.9 billion for a new natural‑gas processing train at Habshan, while Tecnimont was granted $4.3 billion to build a natural‑gas‑liquids fractionation train at Ruwais. These contracts are designed to boost the UAE’s downstream and petrochemical sectors by expanding processing capacity and improving recovery of higher‑value liquids.

Chief Executive Officer Fatema Al Nuaimi described the deals as a “defining moment” for ADNOC Gas. She explained that the investments would accelerate the company’s gas‑processing growth programme and underpin a target of 60 % EBITDA growth by 2030, up from the previous ambition of more than 40 % between 2023 and 2029. The target is based on a Brent crude price of $70 per barrel.

Looking ahead, ADNOC Gas plans to invest roughly $28 billion between 2026 and 2030 to deliver the expanded programme. The total RGD investment, including the $5 billion committed to Phase 1 in June 2025, reaches $13.2 billion. Phase 2 will add a new processing train at Habshan, increasing capacity and operational flexibility, while Phase 3 will introduce a liquids‑fractionation train at Ruwais, improving export‑grade recovery.

The RGD project is one of four megaprojects that together are expected to generate $13.4 billion in In‑Country Value for the UAE. The other projects are Ruwais LNG, Maximizing Ethane Recovery and Monetization (MERAM) and Estidama. MERAM is scheduled for delivery in 2027, while Ruwais LNG and Estidama continue to progress. ADNOC Gas is also expanding its gas‑value chain with the Bab Gas Cap and Umm Shaif Gas Cap developments, which are expected to provide additional natural gas and liquids for processing, LNG exports and future revenue streams.

Beyond physical expansion, the company is scaling the use of artificial intelligence and robotics. New systems include aerial drones, four‑legged inspection robots and tank‑climbing crawlers. ADNOC Gas estimates that these technologies could cut inspection costs by up to 75 %, accelerate certain inspections 15 times, and remove personnel from hazardous environments.

The company’s second‑quarter performance was underpinned by resilient margins in its domestic gas business. The Board approved a quarterly dividend of $940 million, payable in September 2026, and confirmed a commitment to increase the annual dividend by 5 % through 2030. ADNOC Gas remains the largest dividend payer on the Abu Dhabi Securities Exchange.

Security incidents at the Habshan site on 3 April and 8 April were addressed quickly. A technical assessment was completed and gas supply was restored to 85 % of pre‑incident levels, ahead of the year‑end target announced in May. The company also managed disruptions to maritime traffic through the Strait of Hormuz, which affected product liftings during the quarter. ADNOC Gas used inventory, logistics and supply‑chain measures to mitigate the impact and fulfil customer commitments.

For the third quarter, ADNOC Gas expects net income of $600 million to $800 million, assuming continued disruption through the Strait of Hormuz. If maritime operations are fully restored by the fourth quarter and pricing normalises, the company projects a full‑year 2026 net income of $3.5 billion to $4 billion.

The latest earnings and investment decisions reinforce ADNOC Gas’s strategy to expand processing capacity, enhance export capabilities and strengthen the UAE’s energy security while delivering shareholder value.