ADNOC Gas’ Q1 net income surges by 9% to $1.3bn

ADNOC Gas’ Q1 net income surges by 9% to $1.3bn

ADNOC Gas, the gas business of ADNOC Group, said its Q1 2023 net income rose by 9 per cent to $1.3bn on a pro forma basis, the company’s first quarterly results since its record-breaking initial public offering (IPO) in March 2023. The Abu Dhabi-based firm said its net income for the quarter ended March 31 included a one-time tax benefit of $300m following its formation earlier this year. ADNOC Gas’ revenues for the quarter dropped by 15 per cent $5.2bn, compared to pro forma adjusted revenue of for Q1 2022, impacted by the pricing environment. The firm said Brent crude oil prices, which are used for gas pricing, plunged nearly 24 per cent during the period under review. However, the lower prices in lower prices and volumes in Q1 2023 were offset by the lower cost of raw gas supply. The company’s long-term gas supply agreement provides reliable access to production from ADNOC’s upstream operations. “The agreement permits ADNOC Gas to share in any price upside and provides downward protection in a lower price environment,” the company said in a bourse filing. Free cash flow in the first three months of the year stood at $1.1bn compared to illustrative free