Fresh off the back of a year of record profits, Adnoc Gas has put itself in position for another record breaking year with Q1 profits up 7% year-on-year to $1.27bn. The gains were largely driven by an increase in domestic gas sales, coupled with a flexible approach to LNG sales which enabled the firm to capitalize on a strong LNG spot market.
“The growth is across the board,” Adnoc Gas CFO Peter van Driel told the firm’s 6 May earnings call. The firm has three core revenue generating areas which all experienced strong quarters; selling gas into the domestic market; exporting gas liquids and exporting LNG. However, domestic gas supplies remain the dominant segment, accounting for around half of total profits. “Growth in the UAE economy drives our performance,” Mr van Driel told journalists on 6 May. Emphasizing the domestic demand, the CFO said “It is in the power sector, making sure that the lights stay on and homes get cooled, but also industries — think about steel.” (CONTINUED - 949 WORDS)
