ADNOC Gas Q1 2026: SoH Closure and Habshan Damage Cost $210m
ADNOC Gas reported Q1 2026 net income of $1.08 billion on 12 May 2026, down 15% year-on-year from $1.27 billion, after the Strait of Hormuz closure in March and damage to its Habshan processing complex erased an estimated $210 million from earnings. The ADNOC Gas Q1 2026 results confirm the company absorbed one of its most operationally disruptive quarters on record while maintaining dividend commitments.
Total sales volumes fell 15% to 770 TBTU, driven primarily by a 22% drop in export and traded liquids (ETL) and LNG volumes. Domestic gas supply was maintained throughout, with ADNOC Gas deploying floating storage and third-party terminal capacity to absorb the throughput shortfall from the Strait of Hormuz (SoH) closure.
ADNOC Gas Q1 2026: Habshan Outage and Capacity Timeline
The Habshan gas processing complex — which accounts for approximately 60% of ADNOC Gas nameplate capacity — sustained damage on 3–4 April 2026. The company has already begun restoration, with 80% of pre-war Habshan capacity expected to be recovered by Q4 2026 and full pre-incident capacity targeted for mid-2027.
Management confirmed that key growth projects integrating into Habshan infrastructure remain on track, though restoration capital expenditure is still under assessment. The phased recovery timeline indicates Q2 and Q3 2026 will continue to see below-capacity throughput from the facility.
ADNOC Gas held a Q1 2026 cash balance of $4.21 billion and carries a debt-free balance sheet, providing approximately $20 billion in total financial flexibility against a 2x net debt / EBITDA ceiling. The company also has $6 billion in available credit facilities — a $2 billion revolving facility and a $4 billion corporate term loan.
Mitigation: Floating Storage and Pulled-Forward Shutdowns
The company’s operational response to the SoH closure included pulling forward scheduled maintenance shutdowns, increasing ullage at storage facilities ahead of the closure, and utilising floating and third-party storage to keep domestic gas flowing to UAE customers. These measures limited the total earnings impact to approximately $210 million in Q1 2026.
Domestic EBITDA fell 9% quarter-on-quarter to $684 million, while ETL and LNG EBITDA dropped 28% to $979 million combined — the steepest quarterly decline in the series shown in the results presentation.
Dividends and Full-Year Guidance
Despite the operational disruption, ADNOC Gas maintained its dividend policy. The Q1 2026 interim dividend was set at $941 million, a 5% increase year-on-year. Full-year 2026 dividend guidance stands at $3.76 billion, with the 5% per annum growth policy extended to 2030 — three years beyond the original IPO commitment. Total dividend distributions across 2025–2030 are projected at $24.4 billion.
Full-year 2026 EBITDA margin guidance holds at approximately 36%, consistent with the 36.8% recorded in 2025. Capital expenditure guidance for 2026 is $4.5–5.0 billion, up from $3.64 billion in 2025, as the company continues investing in long-term gas processing expansion.
ADNOC Gas Q1 2026 Outlook: OPEC Exit and New Contracts
Management cited the UAE’s exit from OPEC production quotas as a medium-term positive, with increased oil output generating more associated gas — richer in NGLs and potentially higher margin. Two new commercial contracts were disclosed alongside the ADNOC Gas Q1 2026 results: a $5 billion, 25-year gas supply deal for Ta’ziz’s 1.8 mtpa methanol plant (commencing 2029), and a new five-year LNG supply agreement with TotalEnergies from Das Island valued at $700–800 million, with deliveries beginning in 2026.
The company targets adjusted EBITDA growth of 40%+ by 2029 versus 2023 levels, based on $70/bbl oil price assumptions. Q2 2026 net income guidance reflects continued headwinds from both the Habshan outage and SoH closure, partially offset by higher commodity prices aligned with the Brent forward curve.
For a wider view of Middle East LNG infrastructure and terminal capacity, see our Top 10 LNG Terminals in the World 2026 and LNG Infrastructure 2026 analysis. ADNOC’s downstream terminal network is profiled separately at ADNOC Terminals: UAE Petroleum Ports & AI Strategy, and its listed midstream entity at ADNOC Gas Pipeline Assets.
What was ADNOC Gas net income in Q1 2026?
ADNOC Gas reported Q1 2026 net income of $1.08 billion, down 15% from $1.27 billion in Q1 2025. The decline was driven by the Strait of Hormuz closure and damage to the Habshan processing complex.
What happened to the Habshan facility in 2026?
Parts of the Habshan gas processing complex were damaged on 3–4 April 2026. Habshan represents approximately 60% of ADNOC Gas nameplate capacity. The company is targeting 80% capacity restoration by Q4 2026 and full pre-incident recovery by mid-2027.
How did the Strait of Hormuz closure affect ADNOC Gas?
The SoH closure in March 2026 restricted ETL and LNG export volumes, contributing to a 22% drop in combined ETL/LNG sales volumes and an estimated $210 million earnings impact in Q1 2026. ADNOC Gas used floating storage and third-party terminals to maintain domestic supply.
What is ADNOC Gas 2026 dividend guidance?
ADNOC Gas 2026 full-year dividend guidance is $3.76 billion. The Q1 2026 interim dividend was $941 million, a 5% year-on-year increase. The 5% annual growth policy has been extended to 2030.
What new contracts did ADNOC Gas announce with Q1 2026 results?
Two contracts were announced: a $5 billion, 25-year gas supply deal for Ta’ziz’s 1.8 mtpa methanol plant starting 2029, and a $700–800 million five-year LNG supply agreement with TotalEnergies from Das Island, with deliveries beginning in 2026.