UAE-based ADNOC Gas reported a net profit of $1.34 billion for the third quarter of 2025, up 8% compared to the same period in 2024. This marks the highest result ever recorded for a third quarter, despite a decline in oil prices. Year-to-date profit now totals $3.99 billion, representing a 10% year-on-year increase.
This performance is mainly supported by strong domestic operations, with earnings before interest, taxes, depreciation and amortisation (EBITDA) reaching $914 million in Q3, up 26% year-on-year. The increase is linked to a 4% rise in domestic gas sales volumes in the United Arab Emirates, supported by local economic growth. The International Monetary Fund expects 4.8% GDP growth in the country for 2025.
Gains achieved despite weaker oil price environment
While average oil prices declined to $71 per barrel over the first nine months of the year from $83 in 2024, ADNOC Gas improved its margins through renegotiated contracts. Structural enhancements to its commercial framework helped mitigate the impact of falling prices, reflecting a shift in the company’s economic model.
The net income margin stood at 22.6% in Q3 2025, up 275 basis points year-on-year. Operating expenses remained relatively contained at $537 million, marking an 8% increase from the previous year.
New dividend policy brings investors increased visibility
The Board of Directors approved a 5% annual increase in dividend payments through 2030. ADNOC Gas is also introducing quarterly dividend distributions, with the first instalment of $896 million scheduled for payment on December 12, 2025. This initiative is designed to enhance predictability for investors while reinforcing the stock’s appeal.
The strong operational cash flow enables ADNOC Gas to fund both capital expenditure and shareholder returns without incurring additional debt. This financial discipline supports long-term growth investments while maintaining steady profitability.
Key dates for the dividend include a record date of November 24, with the stock trading ex-dividend from November 21. This change aligns ADNOC Gas with international energy market practices by offering regular income distributions.
