ADNOC Fuel PLC on Tuesday reported $1.08 billion in internet earnings for the primary quarter, down 15 p.c in comparison with the identical three-month interval final 12 months as a consequence of export disruptions and decrease home demand.
“Home Fuel gross sales quantity declined by 11 p.c to 519 TBTU [trillion British thermal units] throughout Q1 2026, in comparison with 580 TBTU within the first quarter of 2025 as a consequence of decrease gas-to-electron demand within the area and cooler climate”, the gasoline processing and gross sales arm of Abu Dhabi Nationwide Oil Co PJSC (ADNOC) stated in a bourse submitting.
“Export & Traded liquids gross sales volumes additionally declined by 20 p.c to 202 TBTU versus 251 TBTU a 12 months earlier. The decline was pushed by the closure of the Strait of Hormuz in March that prevented the corporate from exporting LPG, Naphtha and LNG”.
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Whereas the “geopolitical disruption” elevated crude oil costs, ADNOC Fuel’ “capability to seize larger market costs in March was restricted” as a consequence of restricted motion via Hormuz, it stated.
Furthermore, two separate assaults on ADNOC Fuel’ Habshan website in early April have diminished the complicated’s gasoline processing capability. “Inside a brief interval, 60 p.c of the complicated’s processing capability was restored, and the Firm is at the moment working towards attaining 80 p.c restoration by the top of 2026, with full capability restored in 2027”, ADNOC Fuel stated.
“An in depth technical evaluation of the impression from these incidents is progressing amid a dynamic provide chain setting and is nearing completion”.
Nonetheless the corporate recorded a 98.1 p.c asset reliability, although asset availability and utilization registered sharper declines to 93.4 p.c and 75.7 p.c respectively.
“Though some processing trains at Habshan stay offline, total provide throughout the ADNOC Fuel community has been considerably restored, permitting the Firm to proceed assembly home buyer demand via its broader infrastructure”, it stated.
“Moreover, part 1 of the Wealthy Fuel Growth undertaking is anticipated to additional ease bottlenecks and allow ADNOC Fuel to reap the benefits of elevated upstream related gasoline output following the latest lifting of manufacturing constraints”.
Income fell 18 p.c year-over-year to $5 billion. EBITDA dropped 15 p.c to $1.82 billion with a margin of 36.5 p.c.
ADNOC Fuel ended Q1 2026 with $572 million in free money circulate, whereas firm money totaled $4.2 billion.
“ADNOC Fuel’ sturdy monetary place permits ongoing funding all through market cycles and helps its coverage of annual dividend progress at 5 p.c till 2030. The Board has accredited a quarterly dividend of $941 million, set for cost in June 2026”, it stated.
For Q2 ADNOC Fuel expects the closure of Hormuz to negatively impression internet earnings by $400-600 million, “assuming maritime operations return to regular previous to the top of the quarter”.
“On the belief that the Strait is open for the second half of 2026, larger LNG and LPG costs, according to the present Brent ahead curve, are anticipated to assist offset deferred volumes”, ADNOC Fuel added.
“ADNOC Fuel anticipates full-year 2026 internet earnings to vary from $3.5 billion to $4.0 billion, with this outlook reflecting the anticipated impression of the second quarter”.
To contact the writer, e-mail jov.onsat@rigzone.com
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