Adnoc Gas Profit Plunges 52% Amid Strait of Hormuz Disruptions
Adnoc Gas reported a sharp decline in second-quarter profit due to disruptions in oil and gas sales caused by the Iran conflict. The Abu Dhabi state-owned company's net income fell 52% from US$1.39 billion a year earlier to US$665 million, but still managed to beat its own guidance range of US$400 million to US$600 million.
The company attributed the decline in sales to the closure of the Strait of Hormuz after the US and Israel launched attacks on Iran, which had hurt oil-rich Gulf countries. The Strait carries a fifth of the world's oil and liquefied natural gas (LNG) before the conflict.
Despite the challenging operating environment, Adnoc Gas is optimistic about its future prospects and plans to expand oil and gas sales. The company expects to invest around US$28 billion between 2026 and 2030 to deliver growth.