ADNOC Gas profits fall despite early restoration of Habshan facility

ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company, has reported a decline in second-quarter net profit compared to the previous year, despite the early restoration of processing capacity at its Habshan complex. Total comprehensive income for the three months ending in June reached $664.65 million, exceeding the company's guidance range of $400 million to $600 million. In a statement released on Monday, ADNOC Gas attributed this performance to the company's resilience despite unprecedented external disruptions during the period. However, the second-quarter profit remains lower than the record $1.38 billion reported during the same period last year. According to The National, adverse market conditions following Iranian attacks on UAE energy infrastructure and tankers in the Strait of Hormuz have impacted performance. Revenue also fell by more than 33%, dropping from $4.65 billion last year to $3.11 billion. While export operations were hampered by conflict-related disruptions, strong domestic gas demand in the UAE helped maintain revenue levels. During the conflict, energy facilities across the region—including those in Saudi Arabia, Iraq, Bahrain, and Qatar—were targeted. Missile strikes on Qatar reportedly took approximately 17% of the country's liquefied natural gas export capacity offline. The Habshan complex, one of the world's largest gas processing sites, suspended operations in early April following damage. On 3 April, two fires broke out at the site due to shrapnel from intercepted Iranian attacks, resulting in one death and four injuries. The company reported significant damage at the time, followed by a second incident on 8 April. In May, ADNOC Gas had projected that 80% of Habshan's processing capacity would be restored by year-end. On Monday, the company confirmed that technical assessments are complete and reconstruction is ahead of schedule, with gas supply now at 85% capacity. ADNOC Gas continues to pursue its long-term growth strategy, having reached a final investment decision for the second and third phases of its gas expansion project. Contracts for engineering, procurement, and construction (EPC) for these phases total $8.2 billion, with $3.9 billion allocated to phase two and $4.3 billion to phase three. Fatima Al Nuaimi, CEO of ADNOC Gas, stated that these investments will significantly increase processing and export capacity, positioning the company at the heart of the UAE's energy future.