ADNOC Gas’ H1 2023 net income plunges 12% to $2.3bn

ADNOC Gas’ H1 2023 net income plunges 12% to $2.3bn

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UAE’s ADNOC Gas said its half-year income plunged by 12 per cent year-on-year (YoY) to $2.3bn (Dhs8.4bn) from $2.6bn a year ago due to lower pricing.

The company said its H1 2023 net income includes a non-recurring item of $298m from recognizing a deferred tax asset following the formation of ADNOC Gas. Revenues in the six months to June 30 dropped by 20 per cent to $10.6bn, compared to pro forma adjusted revenue of $13.3bn for H1 2022, impacted by the pricing environment.

Brent crude oil prices, which are used for gas pricing, decreased by nearly 31 per cent during the period under review. Second quarter revenue decreased by 24 per cent to $5.4bn versus the pro forma adjusted revenue of $7.1bn in Q2 2022.

However, despite a plunge in revenues, the impact was largely offset by the reduction of feedstock costs, which fell by $1.8bn and a reduction in taxes by $782m. The company’s long-term gas supply agreement provides reliable access to production from ADNOC’s upstream operations.

ADNOC Gas announced its financial results for the first half of 2023 with a net income of $2.3 Billion.

— ADNOC Group (@ADNOCGroup) August 5, 2023

ADNOC Gas’ earnings before interests, taxes,