Adnoc Gas opts for dividend despite revenue decline

Adnoc Gas, wholly owned by the state-backed Abu Dhabi National Oil Company, will maintain its 2026 dividend policy despite a first-quarter revenue decline amid the ongoing US-Iran conflict.

The board approved a dividend of $941 million, payable in June, the company said in a statement to the Abu Dhabi Securities Exchange (ADX) on Tuesday.

Adnoc Gas produced $572 million in free cash flow and closed the quarter with a $4.2 billion cash balance. The company aims to increase its dividend payout by 5 percent annually until 2030.

Net income fell 15 percent year on year and 8 percent quarter on quarter to $1.1 billion between January and March, amid heightened regional uncertainty and challenging market conditions that disrupted maritime traffic through the Strait of Hormuz.

Revenue declined 18 percent year on year to $5 billion due to the near closure of the strait, which continued to impact the liftings of Adnoc Gas products.

“This quarter was shaped by exceptional external disruption, but our priorities were clear: protect our people and assets, and maintain safe domestic supply,” CEO Fatema Al Nuaimi said.

Although the Habshan complex, one of the world’s largest gas processing hubs in southwestern Abu Dhabi, was damaged during the conflict, 60 percent of its processing capacity has been restored.

The company is currently working towards achieving 80 percent restoration by the end of 2026, with full capacity restored in 2027, the statement said.

Further reading:

• Oil and gas facilities targeted in UAE, Bahrain and Kuwait
• Adnoc Gas 2025 dividend payout reaches $3.6bn
• Major economies turn to coal with LNG supply constrained

The ongoing closure of the Strait of Hormuz is expected to affect Adnoc Gas’ second-quarter net income, with projections indicating a range between $400 million and $600 million.

Full-year 2026 net income is anticipated to range between $3.5 billion and $4 billion, assuming the strait is open for the second half of the year and that LNG and LPG prices remain high.

XRG, the low-carbon energy and chemicals investment arm of Adnoc, owns 86 percent of the company.

Shares in Adnoc Gas closed at AED3.38 on Monday on the ADX. The stock has fallen 5 percent in the year to date.