Adnoc Gas Plc · ADX:ADNOCGAS
Adnoc Gas — Q3 2023 Earnings Presentation
26 slides from Adnoc Gas's earnings presentation, Nov 14, 2023
Slide 1: ADNOC Gas Plc Q3 and YTD 2023 Results
ADNOC Gas ADNOC GAS PLC Q3 AND YTD 2023 RESULTS NOVEMBER 14, 2023 ADNOC GAS
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is for background purposes only and does not purport to be full or complete. No reliance may or should be placed by any person for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or f
Slide 3: Speakers
SPEAKERS Ahmed Alebri Chief Executive Officer Peter van Driel Chief Financial Officer 3 Q3 AND YTD 2023 RESULTS PRESENTATION 3 ADNOC Gas
Slide 4: Q3 2023 Highlights
Q3 2023 HIGHLIGHTS • Sales volumes increased to 946 MMBTU, up by 4% against Q3 22 underpinned by a Operational world-class reliability of 98.6% across our operations • Shift to higher margin liquids demonstrates flexibility in operations • Revenues grew to $5,807m in Q3 2023, up by 8% against Q2 23
Slide 5: Robust Demand Drivers
ROBUST DEMAND DRIVERS Global demand for natural gas is expected to see a Our Global Foot Print 25% increase in the next 25-30 years1 NETHERLANDS Located in a strategically situated corridor with GERMANY easy access to the largest and growing gas markets FRANCE Increasing demand for product fro
Slide 6: Clear Growth Strategy
CLEAR GROWTH STRATEGY LEVERAGING AND ENABLING GROWTH AND DIVERSIFICATION Leveraging upstream Adding and maximising Expanding & enhancing 1 2 3 supply growth processing capacity and our product mix enabled by ADNOC’s intent to infrastructure Increasing the volume of higher margin increase oil product
Slide 7: Core Growth Projects
CORE GROWTH PROJECTS RICH SET OF OPPORTUNITIES Select Define Execute FID Execution Start Commissioning 1 IGD-E2 1 ✓ ✓ Q2 - Q3 2024 2 ESTIDAMA Bab Gas Cap 2 ✓ ✓ Q3 2025 Project 5.0 3 Meram 3 ✓ ✓ Q4 2025 LNG 2.0 CO2 recovery 4 ✓ ✓ Q1 2026 4 & injection (Habshan) For details of the individual projects
Slide 8: Financial Performance
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Slide 9: Pricing Environment 2022-2023
PRICING ENVIRONMENT 2022-2023 KEY MARKER PRICES MOMENTUM TURNED POSITIVE IN Q3 2023 Brent Oil LNG $/bbl $/MMBtu ▼ 12% 60 ▼ 12% (12% Brent) 16 130 120 14 110 40 12 100 90 10 20 80 8 70 0 6 60 JKM 12% Brent (RHS) YTD Brent YTD Source: IHS Markit Source: EIA LPG NAPHTHA $/Ton $/Ton 1000 ▼ 31% 1000 ▼ 6%
Slide 10: Sales Quantity Evolution
SALES QUANTITY EVOLUTION ON TRACK TO MEET SALES GUIDANCE OF 3,385 – 3,465 TBTU Sales Quantity (TBTU) ▲ 2% 2,581 2,627 203 173 ▲ 4% 13 11 946 740 908 900 693 873 868 1000 801 48 71 780 69 62 44 4 70 5 5 55 3 800 3 5 4 273 235 244 260 253 600 215 214 1,672 1,703 400 571 588 559 575 621 513 507 200 0 Q
Slide 11: Financial Performance: EBITDA
FINANCIAL PERFORMANCE: EBITDA Q3 23 EBITDA GROWTH SUPPORTED BY IMPROVING PRICES, VOLUMES VS Q2 23 EBITDA – 9-months 22 vs. 9-months 23 EBITDA – Q3 22 vs. Q3 23 (YoY) $, Billions $, Billions EBITDA – Q2 2023 vs. Q3 2023 (QoQ) $, Billions 9m 23 vs. 9m22: Price dynamics negatively impacted 9m 23 EBIT
Slide 12: Financial Performance: Net Income
FINANCIAL PERFORMANCE: NET INCOME PRICE IMPACT PARTLY OFFSET BY INCREASED VOLUMES Net Income – 9-months 22 vs. 9-months 23 Net Income – Q3 22 vs. Q3 23 (YoY) $, Billions $, Billions Net Income – Q2 2023 vs. Q3 2023 (QoQ) $, Billions 9m 23 vs. 9m22: Net Income of $3,375m was 10% lower YoY with high
Slide 13: Financial Performance: Cash-Flow
FINANCIAL PERFORMANCE: CASH-FLOW 9M 23 FREE CASH FLOW COVERS FY23 ANNUAL DIVIDEND OF $3.25 BILLION Free Cash Flow – 9-months 22 and 9-months 23 US$, Billions 9M 23 Free Cash Flow generation of $3.625 million The main impact was in EBITDA due to 3.63 the much stronger pricing environment seen in
Slide 14: Financial Summary
FINANCIAL SUMMARY $ Million 9M 221 9M 232 YoY % Q3 221 Q2 232 Q3 23 YoY % QoQ % 9M 23 vs. 9M Q3 23 vs. Q3 Q3 23 vs. Q2 22 22 23 Revenue 19,898 16,430 -17% 6,613 5,397 5,807 -12% 8% COGS -11,681 -9,481 -19% -3,908 -3,078 -3,466 -11% 13% Opex -1,468 -1,546 5% -521 -553 -479 -8% -13% EBITDA 6,748 5,403
Slide 15: Dividends & Outlook
DIVIDENDS & OUTLOOK
Slide 16: Interim Dividend
INTERIM DIVIDEND • In line with ADNOC Gas Dividend Policy ADG expects to pay a dividend of $3,250mn in respect of 2023. • ADG proposes to pay an interim dividend of $1,625mn in Dec 2023. • ADG demonstrated strong performance in the Q1-Q3 2023 period, which supports the payout of the interim dividend
Slide 17: Forward Looking Guidance (1/2)
FORWARD LOOKING GUIDANCE (1/2) FY 23 Guidance Q3 23 Actual 9-months 23 Actual Updated Range Previous Range Financial EBITDA Margin % 32 33 ∼33 33-35 Q3 23 Actual 9-months 23 Actual Updated Range Previous Range (in TBTU) Production Domestic Gas Products 627 1,719 2,225 - 2,250 2,150 - 2,250 volume Ex
Slide 18: Forward Looking Guidance (2/2)
FORWARD LOOKING GUIDANCE (2/2) • Company expects to gradually increase leverage to fund growth capex requirements Capital Structure • Conservative long-term leverage target of up to 1.5x net debt / EBITDA • $14bn over 2023-28 (peak Capex in 2025-26) Growth Capex • LNG JV: $2bn over 2023-28 (peak Cap
Slide 19: Summary
SUMMARY
Slide 20: ADNOC Gas Q&A
ADNOC Gas Q&A ADNOC GAS
Slide 21: Appendix
APPENDIX
Slide 22: World-Class Gas Platform
WORLD-CLASS GAS PLATFORM LARGE SCALE TANGIBLE GROWTH PROJECTS RELIABLE FEEDSTOCK 10+ BSCFD Nameplate Processing Capacity1 3 BSCFD / 6 MTPA Access to World’s 29 MTPA 20%+ vs. current production Liquid Processing Capacity2 7th Largest Gas Processing & Liquid Processing Gas Reserves >3,250km Capacity A
Slide 23: Our Value Proposition
OUR VALUE PROPOSITION LEVERAGING AND ENABLING GROWTH AND DIVERSIFICATION 1 Vital to Abu Dhabi and the UAE Energy Ecosystem Critical Infrastructure 2 One-of-a-Kind Integrated Gas Platform 3 Exceptional Asset Base Delivering Returns… ADNOC Gas Sustainable and Evolving Yield 4 …With Attractive and Resi
Slide 24: Select ADNOC Gas Growth Project
SELECT ADNOC GAS GROWTH PROJECT $14BILLION PORTFOLIO OF STRATEGIC & GROWTH PROJECTS OVER THE NEXT 5 YEARS Highlights Impact Expected Completion • Extend market reach (new customer in Northern Emirates) A ESTIDAMA c.300km of pipeline Q3 2025 2 • Debottleneck existing network and enable LNG growth • L
Slide 25: Operational Highlights
OPERATIONAL HIGHLIGHTS ROBUST RELIABILITY AND AVAILABILITY Reliability (%) 9-months 23 vs. 9-months 22 Solid asset management and maintenance 99.7 98.8 102 programs focused on maintaining world class asset reliability 100 Remain focused on maintaining stable, best- 99.8 99.6 99.6 in-class reliabilit
Slide 26: Financial Performance: Quarter Comparison
FINANCIAL PERFORMANCE: QUARTER COMPARISON QUARTERLY EBITDA MARGIN FLUCTUATED IN THE 32-35% RANGE EBITDA EBITDA 35% 34% 33% 33% 34% 33% 32% EBITDA US$, Billions Margin 9-months 23 vs. 9-months 22 Q3 23 EBITDA $1,863m was up 5% 6.7 ▼ 20% 5.4 vs. Q2 23 due mainly to stronger 2.4 2.2 revenues (+$411m)