Adnoc Gas Projects Profit Decline Due to Strait of Hormuz Closure
Adnoc gas expects Strait of Hormuz closure to hit full-year profit
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Adnoc Gas, based in Abu Dhabi, anticipates a net profit hit of $400 million to $600 million in Q2 2026 due to the closure of the Strait of Hormuz. Despite higher prices potentially offsetting some losses, the company expects full-year net income to drop to between $3.5 billion and $4.0 billion, down from $5.2 billion last year.
- 01Adnoc Gas forecasts a Q2 net income decline of $400 million to $600 million due to the Strait of Hormuz closure.
- 02Full-year 2026 net income is projected between $3.5 billion and $4.0 billion, a decrease from $5.2 billion in 2025.
- 03Two-thirds of Adnoc's sales are domestic, with the remainder exported through the Strait.
- 04The company maintains its dividend policy despite the ongoing conflict.
- 05Adnoc aims for over 40% growth in EBITDA from 2023 to 2029.
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Adnoc Gas, an Abu Dhabi-based gas company, has announced that the ongoing closure of the Strait of Hormuz is expected to significantly impact its financial performance. The company estimates a decline in net income for the second quarter of 2026, projecting a loss between $400 million and $600 million. This closure has been a result of escalating tensions and threats from Iran, leading to a blockade by the U.S. Despite these challenges, Adnoc anticipates that higher prices for liquefied natural gas (LNG) and liquefied petroleum gas (LPG) could help mitigate some losses once shipping operations resume. For the full year of 2026, Adnoc expects net income to fall to between $3.5 billion and $4.0 billion, down from a record $5.2 billion in 2025. The company reported a 15% year-on-year decline in net income for the first quarter, totaling $1.08 billion. Nevertheless, Adnoc remains committed to its dividend policy, announcing a quarterly dividend of $941 million and maintaining its goal of 5% annual dividend growth through 2030. Additionally, Adnoc aims for substantial growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) of over 40% from 2023 to 2029.
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The closure of the Strait of Hormuz could lead to increased gas prices for consumers and potential disruptions in supply, affecting both domestic and international markets.
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