Now Reading: ADNOC Gas profit halves but beats own guidance amid Iran war
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ADNOC Gas profit halves but beats own guidance amid Iran war
ADNOC Gas reported a 52% drop in second-quarter profit to $665 million, but the result beat its own guidance of $400-600 million. The Abu Dhabi state company blamed the closure of the…
The Story in Brief
ADNOC Gas reported a 52% drop in second-quarter profit to $665 million, but the result beat its own guidance of $400-600 million. The Abu Dhabi state company blamed the closure of the Strait of Hormuz after US-Israeli attacks on Iran, which has disrupted oil tanker traffic and energy infrastructure across the Gulf.
Despite the slump, ADNOC Gas said it plans $28 billion in investment between 2026 and 2030 to expand sales. It awarded $8.2 billion in contracts for the second and third phases of its Rich Gas Development project. The company forecast third-quarter profit of $600-800 million, assuming the strait remains closed. Before the war, Hormuz carried a fifth of the world's oil and LNG.
The Indian Opinion
The Strait of Hormuz is a chokepoint for global energy, and its closure is making Gulf companies like ADNOC Gas count themselves lucky if they merely lose half their profit. Some Indian commentary frames this as just another geopolitical headache. It is more: a reminder that India imports a fifth of its LNG from the Gulf. The real test will be whether ADNOC's guidance of $600-800 million profit next quarter proves accurate, because if the strait stays shut that number becomes a ceiling, not a floor.
Source: livemint.com
This story was synthesised by AI from the source linked above.
