Habshan gas processing complex is expected to return to full operational capacity next year after recent disruptions caused by attacks.
ADNOC Gas said on Tuesday that continued disruption to maritime traffic through the Strait of Hormuz is expected to weigh on second-quarter earnings, even as it reported resilient first-quarter profit and maintained its long-term growth outlook.
The company also noted that despite recent security incidents affecting operations at the Habshan gas processing complex, its strategic plans remain unchanged, with recovery and capacity restoration expected over the coming period.
ADNOC Gas, the Abu Dhabi-listed company, reported net income of $1.1 billion for Q1 2026, down 8% from the previous quarter. The company attributed the decline to “increased regional uncertainty and difficult market conditions,” which it said have disrupted the energy sector and maritime movements through the Strait of Hormuz.
Fatema Al Nuaimi said: “This quarter was shaped by exceptional external disruption, and our priorities were clear: protect our people and assets, maintain safe domestic supply, and protect shareholder value through disciplined execution. Our Q1 results demonstrate resilience, supported by rigorous cost management and a solid balance sheet.”
ADNOC Gas said continued disruption to maritime movements through the Strait of Hormuz—a key global transit route for oil and gas—has impacted cargo liftings of LNG and LPG products.
Fatema Al Nuaimi said: “As we manage the disruption to maritime movements through the Strait of Hormuz, the long-term foundations of ADNOC Gas remain intact.”
The company added that it has been relying on inventory management, storage capacity, and coordination with customers to continue meeting supply commitments wherever possible despite shipping constraints.
ADNOC Gas said the ongoing closure of the Strait of Hormuz is expected to impact its Q2 net income, with projections ranging between $400 million and $600 million, assuming maritime operations return to normal before the end of the quarter.
The company added that if the Strait reopens for the second half of 2026, higher LNG and LPG prices—aligned with the current Brent forward curve—could help offset deferred volumes. It expects full-year 2026 net income to range between $3.5 billion and $4.0 billion, reflecting the anticipated Q2 impact.
Financially, ADNOC Gas ended the quarter with $4.2 billion in cash and generated $572 million in free cash flow. Its board also approved a quarterly dividend of $941 million, payable in June.
ADNOC Gas reaffirmed its policy of increasing dividends by 5% annually through 2030 and maintained its target of more than 40% EBITDA growth between 2023 and 2029.
The company said its Habshan gas processing complex was hit by two security-related incidents on April 3 and April 8, triggering emergency response and business continuity measures.
It added that 60% of the facility’s processing capacity was restored within a short period, with plans to reach 80% restoration by the end of 2026 and full capacity expected by 2027.
The Habshan facility is one of the UAE’s largest gas processing hubs and plays a critical role in supplying fuel to domestic power generation and industrial customers.
Despite some processing units still remaining offline, ADNOC Gas said its wider network infrastructure has enabled it to largely restore supply and continue meeting domestic demand.
The company added that the first phase of its Rich Gas Development project is expected to ease bottlenecks and support higher associated gas production as upstream production constraints ease.
ADNOC Gas also highlighted rising domestic industrial demand in the United Arab Emirates as a long-term growth driver, pointing to the TA’ZIZ project and broader manufacturing investments under the “Make it in the Emirates” programme led by ADNOC.
