Slide 1: ADNOC Gas Investor Presentation
ADNOC Gas ADNOC GAS INVESTOR PRESENTATION
Slide 2: Disclaimer
DISCLAIMER Q2 2024 RESULTS PRESENTATION 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 it
Slide 3: Speakers
SPEAKERS Mohamed Al Hashemi CHIEF OPERATIONS OFFICER PETER VAN DRIEL CHIEF FINANCIAL OFFICER ADNOC Gas 3
Slide 4: Q2 2024 Key Highlights
Q2 2024 KEY HIGHLIGHTS PERFORMANCE $1.19 billion • 21% YoY increase in Net Income Net Income, +21% YoY • 18% YoY increase in EBITDA with a margin of 34% $1.0 billion • • Free cash flow of $1Bn as growth capex starts to ramp up Interim dividend of $1,706 million to be paid in Sep 2024, +5% YoY as per
Slide 5: Core Growth Projects Driven by Robust Demand
CORE GROWTH PROJECTS DRIVEN BY ROBUST DEMAND Average Forecast Real GDP Growth (2024 – 2029) Emerging Advanced Economies Economies UAE 2.3% 2.6% 3.6% Global Gas Demand by Sector UAE Gas Demand Growth • Global gas demand is expected to see a ~14% increase by 2040 14% • UAE Domestic gas demand growth t
Slide 6: Core Growth Projects
CORE GROWTH PROJECTS Growth projects with 20% capacity increase potential in the next 5 years EXPECTED ADNOC GAS PROJECTS COMPLETION FID IGD-E2 A Q1 2025 Driven by UAE’s A G FID MERAM C Q4 2025 current plan to 3 LNG Trains Pipelines Management B grow oil production from Network P 5.0 E 2027 3 to 5 S
Slide 7: Ruwais LNG – Derisked Opportunity for ADNOC Gas
RUWAIS LNG – DERISKED OPPORTUNITY FOR ADNOC GAS July 2024 2028 Completion A Landmark Energy Project World Leading Partners Confirmed Track-record • Two LNG liquefaction trains with a total export capacity of 9.6mmtpa • Deliveries are expected to start in 2028 • More than 50 years operational and • W
Slide 8: Pricing Environment 2023-2024
PRICING ENVIRONMENT 2023-2024 Strong growth in key ETL product prices in Q2 24 versus Q2 23 Brent Oil Butane $/bbl $/MMBtu 110 +9% 800 +15% 100 700 637 90 83 85 590 78 600 80 513 70 500 60 400 50 40 300 30 200 20 100 10 0 0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Prop
Slide 9: Improved Sales Volume
IMPROVED SALES VOLUME Domestic gas production volumes stable; slight increase in Exports & Traded Liquids volumes H2 24 Outlook Sales Quantity (TBTU) +1% 946 900 912 908 890 780 621 575 589 580 573 507 253 273 257 241 266 214 55 69 48 60 74 56 4 3 4 6 3 6 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4
Slide 10: Strong Y-o-Y Domestic Gas EBITDA Growth
STRONG Y-O-Y DOMESTIC GAS EBITDA GROWTH Domestic Gas EBITDA improved to $695 million, up 13% due to favorable contract prices +7% Sales Quantity MMBTU 1,153 +1% 1,082 621 589 580 575 573 +22% 507 1,421 1,169 +13% EBITDA 727 753 726 $ millions 695 107 615 554 1,421 1,169 727 726 695 615 646 554 Q1 23
Slide 11: 21% EBITDA Expansion Driven by ETL
21% EBITDA EXPANSION DRIVEN BY ETL Significant EBITDA expansion for Export Traded Liquids supported by improved prices +8% Sales Quantity 0% 637 MMBTU 322 321 322 317 315 591 +18% 269 2,691 EBITDA $ millions +21% 2,280 572 1,405 1,333 1,358 490 296 1,157 265 1,123 1,109 307 220 161 270 2,119 1,790 1
Slide 12: 21% Y-o-Y Increase in Net Income
21% Y-O-Y INCREASE IN NET INCOME Net income improvement enabled by positive price movement and efficiency gains Net Income – H1 2024 vs. H1 2023 $, millions 758 707 -250 32 24 2,377 1,960 -626 -228 H1 2023 Price effect Volume effect MGP Profit sharing OPEX DTA, depreciation, Tax H1 2024 others Net I
Slide 13: Strong Free Cash Flow of $2.2 Billion
STRONG FREE CASH FLOW OF $2.2 BILLION Exceeding H1 2024 interim dividend by 28% Free Cash Flow – H1 2024 vs. H1 2023 $, millions Interim dividend timeline 622 ‹ Board 9 Aug approval -228 ‹ 15 Aug 2,318 Entitlement Date -420 2,185 -107 ‹ Ex-Div Date 16 Aug 1,706 ‹ Record Date 19 Aug ‹ Expected 2-4 Se
Slide 14: Outlook
OUTLOOK
Slide 15: 2024 Capital Market Guidance
2024 CAPITAL MARKET GUIDANCE 2024 guidance H1 2024 actual 2024 updated guidance Financial EBITDA Margin % 34% 34% 34% (in TBTU) 2024 guidance H1 2024 actual 2024 updated guidance Domestic Gas Products 2,215 – 2,300 1,153 2,240 – 2,280 Sales volume Lower volumes expected in Exports & Traded Liquids 9
Slide 16: 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 Growth Capex • $13.2Bn over 2024 - 28 (peak Capex in 2025-26) Maintenance Capex • $300-4
Slide 17: An Integrated Global Gas Player
AN INTEGRATED GLOBAL GAS PLAYER Q2 2024 EBITDA up 18% Q2 2024 Net Income up 21% $1,706 million Interim dividend $2,086 million $1,190 million 5% growth over 2023 99.7% asset reliability Enhanced Capital Efficiency Progress on Ruwais LNG Focus on operational efficiency Ownership transfer of 3 Heads o
Slide 18: Appendix
APPENDIX
Slide 19: Shareholder and Free Float Update
SHAREHOLDER AND FREE FLOAT UPDATE Shareholder Structure of ADNOC Gas ADNOC Gas Shareholders (%) As of October 2024 Shareholders No of shares Percentage (%) 90.0% Abu Dhabi National Oil Company (ADNOC) 69,076,279,811 90.0% ADNOC Abu Dhabi National Energy Co PJSC 3,837,571,094 5.0% TAQA ADNOC Gas ESOP
Slide 20: AI at the Core of Our Growth Strategy
AI AT THE CORE OF OUR GROWTH STRATEGY Operational excellence driven by embracing AI and technology Our strong operational performance is underpinned by a firm belief in the transformative potential of AI, digitalization and technology, which is evident in our strategic deployment of AI solutions in
Slide 21: Financial Performance
FINANCIAL PERFORMANCE Resilient margins in changing price environments REVENUES COSTS US$, Billions US$, Billions Cost of Feedstock OPEX 4.2 3.9 7.1 6.6 3.5 3.4 3.5 3.6 3.4 3.5 6.2 5.9 6.3 6.0 6.1 3.1 5.4 5.8 2.9 5.2 0.5 0.5 0.5 0.5 0.5 0.6 0.5 0.5 0.5 0.5 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q
Slide 22: Quarterly Comparison
QUARTERLY COMPARISON EBITDA NET INCOME $ Billions $ Billions EBITDA Margin 34% 2.4 35% 33% 35% 2.2 2.2 35% 34% 2.2 0.4 2.1 2.1 1.4 33% 32% 0.3 0.3 1.9 34% 33% 0.2 1.3 0.2 0.5 1.9 0.3 0.3 1.8 1.8 0.1 1.2 1.2 1.2 0.1 0.2 0.2 0.0 0.1 0.0 1.1 1.1 1.2 0.1 0.1 0.0 0.1 0.2 0.1 0.2 0.3 0.2 1.0 1.0 0.1 0.0 0
Slide 23: Financial Summary
FINANCIAL SUMMARY YoY % QoQ % $ Million (unaudited figures) Q2 23 Q1 24 Q2 24 Q2 24 vs. Q2 23 Q2 24 vs. Q1 24 Revenue 5,397 6,011 6,076 13% 1% COGS -3,078 -3,410 -3,480 13% 2% Opex -553 -525 -510 -8% -3% EBITDA 1,766 2,076 2,086 18% 1% Net Income 984 1,187 1,190 21% 0% EBITDA Margin 33% 35% 34% 2% -