Adnoc Gas Plc · ADX:ADNOCGAS
Adnoc Gas — Q1 2024 Earnings Presentation
24 slides from Adnoc Gas's earnings presentation, May 7, 2024
Slide 1: ADNOC Gas Q1 2024 Results
ADNOC Gas ADNOC GAS Q1 2024 RESULTS 7 MAY 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 Q1 2024 RESULTS PRESENTATION 3 ADNOC Gas
Slide 4: Q1 2024 Key Highlights
Q1 2024 KEY HIGHLIGHTS 890 TBTU • Overall sales volumes increase by 14% YoY Sales Volumes Operational • Domestic revenue up 10% due to strong demand 99.4% Reliability • Strong operational performance $1.19 billion • EBITDA margin of 35% vs. 34% a year earlier Adj. Net Income Financial • Free Cash fl
Slide 5: Core Growth Projects
CORE GROWTH PROJECTS $13.2B GROWTH PROJECTS WITH 20% CAPACITY INCREASE POTENTIAL IN THE NEXT 5 YEARS G EXPECTED 3 PROJECT COMPLETION LNG A Trains Upstream 3 IGD-E2 A Q3 2024 1 Supply Growth Pipelines B 4 DAS Management NGL Fractionation Network 2 ESTIDAMA B Q3 2025 Sulphur Facilities 2 3 MERAM C Q4
Slide 6: Financial Performance
FINANCIAL PERFORMANCE
Slide 7: Pricing Environment 2022-2024
PRICING ENVIRONMENT 2022-2024 MODEST DECLINES IN KEY ETL PRODUCT PRICES IN Q 1 24 VERSUS Q1 23 Brent Oil Butane $/bbl $/MMBtu 130 1,200 110 2% 800 LNG chart -11% 90 84 83 712 81 618 637 400 70 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24
Slide 8: Sales Quantity Evolution
SALES QUANTITY EVOLUTION 14% SALES VOLUME GROWTH YOY SUPPORTED BY A STRONG PERFORMANCE IN Q 1 Sales Quantity (TBTU) +14% 946 908 900 912 890 873 868 801 780 621 588 575 589 573 571 559 513 507 244 253 273 257 241 215 235 260 214 70 62 71 55 69 48 60 74 44 3 5 5 5 4 3 4 6 3 Q1 22 Q2 22 Q3 22 Q4 22 Q1
Slide 9: Domestic Gas
DOMESTIC GAS YOY GROWTH ON THE BACK OF STRONG VOLUMES AND REALIZATIONS Sales Quantity MMBTU +13% 621 588 589 571 575 573 559 513 507 EBITDA +31% $ millions 753 107 727 726 615 646 538 548 552 575 554 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Volume One-off payment EBITDA 9 Q1 2024 RESULT
Slide 10: Export & Traded Liquids and LNG
EXPORT & TRADED LIQUIDS AND LNG GROWTH ON THE BACK OF STRONG VOLUMES +17% Sales Quantity 322 321 MMBTU 315 317 315 304 297 285 269 1,685 1,571 1,522 EBITDA +15% 403 1,405 $ millions 306 1,333 490 1,299 296 203 1,157 1,123 1,109 307 220 161 270 1,282 1,216 1,081 1,096 1,109 1,026 937 948 853 Q1 22 Q3
Slide 11: Robust Net Income Performance
ROBUST NET INCOME PERFORMANCE 21% Y-O-Y INCREASE IN Q1 2024 NET INCOME TO $1.19 BILLION Net Income – Q1 2024 vs. Q1 2023 $, millions 731 -213 1,187 55 -260 -11 -7 977 -85 Q1 20231 Price effect Volume effect MGP Profit sharing OPEX DTA, depreciation, Tax Q1 2024 others Net Income – Q1 2024 vs. Q4 202
Slide 12: Cash-Flow Overview
CASH-FLOW OVERVIEW STRONG FREE CASH FLOW GENERATION OF $1.18 BILLION, UP 47% YEAR -ON-YEAR Free Cash Flow – Q1 2024 vs. Q1 2023 $, millions 374 1,183 302 -85 806 -214 1.0 Q1 2023 EBITDA Taxes CAPEX Other (incl. working capital) Q1 2024 12 Q1 2024 RESULTS PRESENTATION
Slide 13: Financial Summary
FINANCIAL SUMMARY , $ Million (unaudited figures) Q1 23 Q4 23 Q1 24 YoY % QoQ % Q1 24 vs. Q1 Q1 24 vs. Q4 23 23 Revenue 5,226 6,301 6,011 15% -5% COGS -2,938 -3,598 -3,410 16% -5% Opex -514 -491 -525 2% 7% EBITDA 1,774 2,212 2,076 17% -6% Adjusted Net Income1 977 1,345 1,187 21% -12% EBITDA Margin 3
Slide 14: Outlook
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Slide 15: 2024 Capital Market Guidance
2024 CAPITAL MARKET GUIDANCE 2024 guidance Q1 2024 actual 2024 updated guidance Financial EBITDA Margin % 34% 35% 34% (in TBTU) 2024 guidance Q1 2024 actual 2024 updated guidance Domestic Gas Products 2,215 – 2,300 573 2,215 – 2,300 Sales volume Exports & Traded Liquids 940 - 960 241 940 – 960 LNG J
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 • $13.2 bn over 2024 - 28 (peak Capex in 2025-26) Growth Capex • LNG JV: $2bn over 2024
Slide 17: Strategic Growth Fueling Dividend Growth
STRATEGIC GROWTH FUELING DIVIDEND GROWTH COMMITMENT TO GENERATING VALUE FOR SHAREHOLDERS THROUGH STRATEGI C GROWTH Investments in Capacity Expansion UAE Oil and Gas Production Growth & International Sales Expansion • Planned investment of > $13 billion from 2024 onwards in • UAE oil and gas producti
Slide 18: An Integrated Global Gas Player
AN INTEGRATED GLOBAL GAS PLAYER Integrated gas business Reliable Feedstock World-class Operating in an Strategic positioning Operating across gas access operations attractive economy Critical energy player vital processing, liquefaction, Access to the World’s 7th One of the highest gas Supported by
Slide 19: ADNOC Gas Q&A
ADNOC Gas Q&A ADNOC GAS
Slide 20: Appendix
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Slide 21: AI at the Core of Our Growth Strategy
AI AT THE CORE OF OUR GROWTH STRATEGY OPERATIONAL EXCELLENCE DRIVEN BY EMBRACING AI AND TECHNOLOGY Our strong operational performance is underpinned by a firm belief in the transformative potential of AI, digitalization and technology, which is evident in our strategic deployment of AI solutions in
Slide 22: Financial Performance
FINANCIAL PERFORMANCE RESILIENT MARGINS IN CHANGING PRICE ENVIRONMENTS REVENUES REVENUES COSTS US$, 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 6.2 5.9 6.3 6.0 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 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 2
Slide 23: 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 24: Quarterly Comparison
QUARTERLY COMPARISON EBITDA EBITDA Margin NET INCOME $ Billions $ Billions 35% 34% 33% 33% 34% 33% 32% 35% 35% 2.2 2.4 2.2 1.9 1.8 1.8 1.9 2.2 2.1 1.2 1.4 1.2 1.1 1.0 1.0 1.1 1.2 1.2 0.4 0.3 0.3 0.2 0.2 0.5 0.3 0.1 0.1 0.2 0.2 0.1 0.0 0.1 0.1 0.2 0.0 0.1 0.2 0.1 0.3 0.2 0.1 0.0 0.1 0.0 0.0 0.1 0.1 0