ADNOC Gas (ADNOCGAS.AD), opens new tab reported a 52% slide in second-quarter profit on Monday, with sales hit by the closure of the Strait of Hormuz after the U.S. and Israel launched attacks on Iran. The Abu Dhabi state-owned company's second-quarter profit fell to $665 million from $1.39 billion a year earlier but beat its guidance range of $400 million to $600 million. The listed company relied on its domestic market to sustain profits, with $1 billion of its $1.7 billion of first-half net profit coming from local clients, CFO Peter van Driel said.
"The majority of the profit comes from domestic markets; that is really the backbone of our operational results," he said. The Middle East conflict has hurt oil-rich Gulf countries as Iran has attacked their energy infrastructure and oil tankers while also blocking shipping in the Strait of Hormuz, which previously carried a fifth of the world's oil and liquefied natural gas. ADNOC, the parent company, said on Friday that it was feeling significant impact from what it described as unprovoked attacks on its people and assets. One of its tankers was attacked in Hormuz as recently as Saturday.
ADNOC Gas has been looking at different options while monitoring the situation in the Strait of Hormuz, CEO Fatema Al Nuaimi told a press briefing.
"We cannot be in this environment and not look at alternatives," she said, adding that she was not in a position to say more on the matter at the moment. ADNOC Gas estimated net income for the third quarter in a range of $600 million to $800 million and from $3.5 billion to $4 billion for the full year. That compared with $1.4 billion in the same period last year and well below its record full-year net income of $5.2 billion in 2025.
Nevertheless, ADNOC Gas said it plans to expand oil and gas sales, expecting to invest about $28 billion between 2026 and 2030 to deliver growth. "ADNOC Gas delivered resilient second-quarter net income above our guided range despite a challenging operating environment," the company said. The company said it awarded $8.2 billion in engineering, procurement and construction contracts during the quarter for the second and third phases of its Rich Gas Development project.
The second phase, to be delivered by Wison Engineering (2236.HK), opens new tab, will add a new natural gas processing unit at the Habshan facility. Phase three, to be delivered by Tecnimont, an arm of Italian company Maire (MTCM.MI), opens new tab, will add a new natural gas liquids (NGL) fractionation unit at Ruwais, aimed at increasing the recovery of higher-value liquids from natural gas for export.
