ADNOC Gas Profit Plunges 52% Amid Strait of Hormuz Disruptions

ADNOC Gas reported a significant decline in second-quarter profitability due to disruptions in the Strait of Hormuz. The Abu Dhabi-based natural gas company posted net income of $665 million for the quarter, down 52% from $1.39 billion recorded during the same period last year.

The company's performance was affected by the closure and disruption of shipping routes through the Strait of Hormuz following escalating military tensions involving Iran, the United States, and Israel. The strategic waterway is a critical route for global energy trade, handling roughly one-fifth of the world's oil and liquefied natural gas shipments.

Despite the external challenges, ADNOC Gas benefited from strong demand in its domestic market. Chief Financial Officer Peter van Driel said approximately $1 billion of the company's $1.7 billion first-half net income came from local customers.