Slide 1: ADNOC Gas Q4 and FY 2023 Results
ADNOC Classification: Public ADNOC Gas ADNOC GAS Q4 AND FY 2023 RESULTS 12 FEBRUARY 2024 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 Dr. Ahmed Alebri Chief Executive Officer Peter van Driel Chief Financial Officer 3 2023 RESULTS PRESENTATION 3 ADNOC Gas
Slide 4: 2023 Key Highlights
2023 KEY HIGHLIGHTS 3,540 TBTU • 3% sales volume growth – ahead of guidance Sales Volumes Operational • Strong operational performance 99.1% Reliability • $9 – 12 Billion in new LNG agreements $4.72 billion • Stable EBITDA margin at 33.5% Net Income • Resilient free cash flow generation Financial $4
Slide 5: Robust Demand Drivers
ROBUST DEMAND DRIVERS ✓ Global demand for natural gas is expected to see a Our Global Foot Print ~15% increase over the next 10 years ✓ Located in a strategically situated corridor with NETHERLANDS easy access to the largest and growing gas markets GERMANY FRANCE ✓ Increasing demand for product from
Slide 6: Growth Strategy
GROWTH STRATEGY $13.4B GROWTH PROJECTS WITH 20% CAPACITY INCREASE POTENTIAL IN T HE NEXT 5 YEARS G EXPECTED 3 PROJECT COMPLETION LNG B Trains Upstream 2 ESTIDAMA A Q3 2025 1 Supply Growth Pipelines A 4 DAS Management NGL Fractionation Network 3 IGD-E2 B Q3 2024 Sulphur Facilities 2 3 MERAM C Q4 2025
Slide 7: Environmental, Social & Governance
ENVIRONMENTAL, SOCIAL & GOVERNANCE ADG FULLY COMMITTED TO THE DECARBONIZATION AND THE UAE’S SUSTAIN ABILITY GOALS Environmental Social Governance 2023 Achievements 0 0.06 67.8% 1.2 Fatalities / Catastrophic Total Recordable Injury Events Rate In-Country-Value ABATED 1.2 MT CO2eq Fatalities / Catastr
Slide 8: Financial Performance
FINANCIAL PERFORMANCE
Slide 9: Pricing Environment 2022-2023
PRICING ENVIRONMENT 2022-2023 KEY MARKER PRICES MOMENTUM STARTING TO TAKE A POSITIVE TURN Brent Oil LNG $/bbl $/MMBtu ▼18% 50 ▼18% (12% Brent) 14 120 110 40 12 100 30 10 90 80 20 LNG chart 8 10 70 0 6 60 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23
Slide 10: Sales Quantity Evolution
SALES QUANTITY EVOLUTION 2.6% SALES VOLUME GROWTH YOY SUPPORTED BY A VERY STRONG PERFORMANCE IN Q4 Sales Quantity (TBTU) ▲ 5.1% ▲ 2.6% Peak shutdown activity 3,449 3,540 18 17 232 247 801 873 908 868 781 900 947 912 954 997 4 5 3 6 5 5 48 71 69 60 3 62 44 4 70 55 273 244 253 257 235 260 215 214 2,23
Slide 11: Domestic Gas EBITDA
DOMESTIC GAS EBITDA GROWTH ON THE BACK OF STRONG VOLUMES EBITDA and Sales Quantity +3% +5% 621 2,293 2,231 589 MMBTU 559 MMBTU +20% +31% $ millions 2,649 2,213 753 727 107 615 552 575 554 $ millions 538 548 646 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Volume One-off
Slide 12: Export Traded Liquids & LNG EBITDA
EXPORT TRADED LIQUIDS & LNG EBITDA EXPORT PRODUCTS MOSTLY MOVE IN LINE WITH BRENT EBITDA and Sales Quantity +4% 321 317 304 +2% MMBTU 1,229 1,201 MMBTU -21% +8% 1,685 1,571 6,075 1,522 1,405 1,401 403 $ millions 4,793 $ millions 306 1,299 490 1,123 946 1,157 296 203 1,109 220 161 270 4,674 1,216 1,2
Slide 13: Robust Net Income Performance
ROBUST NET INCOME PERFORMANCE NEGATIVE PRICE IMPACT PARTLY OFFSET BY INCREASED VOLUMES Net Income – Q4 2022 vs. Q4 2023 $, millions 62 1,345 296 92 26 32 56 1,084 117 Q4 2022 Price effect Volume effect MGP Profit sharing OPEX DTA, depreciation, Tax Q4 2023 others Net Income – 2022 vs. 2023 $, millio
Slide 14: Cash-Flow Overview
CASH-FLOW OVERVIEW 2023 FREE CASH FLOW SIGNIFICANTLY EXCEEDS FY23 ANNUAL DIVIDEND OF $3.25 BILLION Free Cash Flow – 2022 vs. 2023 $, millions 5,212 1,060 397 4,460 593 112 1.0 2022 EBITDA Taxes CAPEX Other 2023 Note: 2023 FCF in line with unaudited financial statements 14 2023 RESULTS PRESENTATION
Slide 15: Financial Summary
FINANCIAL SUMMARY $ Million (unaudited figures) 20221 20232 YoY % Q4 221 Q3 232 Q4 23 YoY % QoQ % 2023 vs. 2022 Q4 22 vs. Q4 23 Q4 23 vs. Q3 23 Revenue 25,785 22,731 -11% 5,888 5,807 6,301 7% 8% COGS 15,126 13,079 -14% 3,445 3,466 3,598 4% 4% Opex 1,985 2,037 3% 517 479 491 -5% 2% EBITDA 8,674 7,614
Slide 16: Strong 2023 Performance
STRONG 2023 PERFORMANCE DELIVERY IN LINE WITH CAPITAL MARKET GUIDANCE 2022 Actual 2023 Guidance 2023 Actual Delivery vs guidance Financial EBITDA Margin % 33.6% ∼33% 33.5% 2022 Actual Updated Range 2023 Actual Delivery vs guidance (in TBTU) Production Domestic Gas Products 2,181 2,225 - 2,250 2,315
Slide 17: Outlook
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Slide 18: 2024 Capital Market Guidance
2024 CAPITAL MARKET GUIDANCE 2023 Actual 2023 Actual 2024 guidance Financial EBITDA Margin % 33.5% Flat YoY (in TBTU) 2023 Actual 2024 guidance Domestic Gas Products 2,293 2,215 – 2,300 Sales volume Planned shutdowns mostly Exports & Traded Liquids 997 940 - 960 scheduled for Q1 2024 (similar to Q1
Slide 19: 2024 Capital Market Guidance (Cont'd)
2024 CAPITAL MARKET GUIDANCE (CONT’D) • 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 • $13.4 bn over 2024 - 28 (peak Capex in 2025-26) Growth Capex • LNG JV: $2bn over 2024
Slide 20: Q&A
ADNOC Classification: Public ADNOC Gas Q&A ADNOC GAS
Slide 21: Appendix
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Slide 22: Quarterly Comparison
QUARTERLY COMPARISON QUARTERLY EBITDA MARGIN FLUCTUATED IN THE 32-35% RANGE THROUGHOUT 2023 EBITDA EBITDA Margin Net Income $ Billions $ Billions 34% 35% 33% 2.4 33% 35% 2.2 34% 33% 32% 2.2 2.2 1.4 1.9 1.9 1.3 1.3 1.8 1.8 1.2 1.2 1.1 1.1 1.0 0.4 0.2 0.1 0.3 0.1 0.3 0.5 0.1 0.2 0.2 0.1 0.0 0.2 0.0 0.
Slide 23: Operational Performance
OPERATIONAL PERFORMANCE Reliability (%) 99.8 99.6 99.6 99.8 99.0 99.1 98.5 98.6 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 23 2023 RESULTS PRESENTATION