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ADNOC Gas plc, a subsidiary of the state energy company Abu Dhabi National Oil Company, posted a 21% rise in Q1 2024 net profit to $1.19 billion due to robust sales within the country.
The net profit was a shade higher than analysts’ mean estimate of $1.11 billion, according to LSEG data.
Q1 revenue rose 15% year-on-year (YoY) to $6.01 billion underpinned by a strong increase in demand in the UAE, which saw overall sales volumes increase by 14% YoY, the company said in a statement on Tuesday.
“Our strong profitability was backed by a high cash conversion rate where our free cash flow generation was up 47% year-on-year to $1,183 million," said CEO Ahmed Alebri.
The company plans to invest more than $13 billion in domestic and international growth opportunities between 2024 and 2028.
"Our robust cash flow generation will enable us to grow the annual dividend by 5% to $3.41 billion in 2024, in line with our dividend policy," said Alebri.
In Q1, the company incurred $387 million in capital expenditure, up 123% YoY.
(Reporting by Brinda Darasha; editing by Seban Scaria)
