Solid margins despite disruption

Research evidence excerpt

Solid margins despite disruption

MENA Energy

ADNOC Gas (ADNOCGAS UH)

EQUITY RESEARCH Quick Take

May 12, 2026

Solid margins despite disruption Price: AED3.38

Price Target: AED4.70 Takeaways

Rating: Overweight We expect ADNOC Gas 1Q26 results to be viewed neutrally by the

Key Statistics: market, with the company reporting adjusted net income slightly ahead

Symbol ADS: ADNOCGAS of consensus, driven by good cost management despite disruption to

UH volumes. However, the company has guided net income for 2Q26 and FY26

52-Week Range 3.12 - 3.76 slightly lower than consensus and suggests its Habshan site will be back Market Cap 259,419.8

to full capacity in 2027. The company maintained its FY26 guidance of ADV (3 mo) 29,705,030

Free Float (%) 9.000 EBITDA margin at c.36%, but adjusted some of its segment volume and

Shares Out (M) 76,751.4 net profit unit margin guidance. The company also proposed a 4.5 fils/sh

quarterly dividend. ADNOC Gas did not mention timing of its RGD (Rich Gas

Research Analysts: Development) Phase II and Phase III final investment decision in its release,

Scott Darling although we expect an update from management at the earnings call.

+971 52 699 0785

scott.darling@cantor.com Solid margins despite disruption. ADNOC Gas reported 1Q26 revenue at

US$5,003m vs consensus at US$5,016m. EBITDA margin was 36% (vs 37%

One-Year Price History in 4Q25 and 35% in 1Q25) vs consensus at 35%. The company’s adjusted

4 net income was US$1,079m slightly higher than consensus, driven by good

3.8

3.6 cost management despite lower sales volumes. Domestic gas volumes were

3.4 3.2 down c.11% y/y, while export and traded liquids were down 20% y/y.

3 The company is guiding net income in 2Q26, in the range US$400-600m