ADNOC Gas Q2 Profit Falls 52% as Strait of Hormuz Disruptions Hit Sales

ADNOC Gas reported a 52 percent year-on-year decline in second-quarter profit as disruption in the Strait of Hormuz weighed on sales after U.S. and Israeli strikes on Iran.

The Abu Dhabi state-owned gas company said net profit fell to $665 million, against $1.39 billion in the same quarter last year. But the figure was still above the company's guidance of $400 million-$600 million.

The ongoing Iran conflict has posed serious challenges for energy companies in the Gulf. Iran has targeted energy infrastructure and oil tankers, while disruption to shipping through the Strait of Hormuz has jeopardized a vital energy lifeline. The waterway carried around a fifth of the world’s oil and LNG shipments before the war.

ADNOC Gas Plans $28 Billion Investment

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ADNOC Gas is focused on investing in the oil and gas business, with plans to invest about $28 billion between 2026 and 2030 to support future growth.

For the third quarter, ADNOC Gas expects profit of about $600 million-$800 million, if maritime traffic through the Strait of Hormuz remains disrupted.

The company said its second quarter performance was resilient, and that earnings were above the company's target in the second-quarter and that revenues were still above the original guidance despite the tough market conditions.

ADNOC Gas also announced that it awarded $8.2 billion in engineering, procurement and construction contracts for the second and third phases of its Rich Gas Development (RGD) Project during the quarter.

The company had already awarded around $5 billion in contracts in 2025 for the first phase of the project. RGD is designed to expand the domestic gas processing capacity and help recover liquids for export markets.

The second phase delivered by Wison Engineering includes the addition of a new natural gas processing unit at ADNOC Gas' Habshan facility.

So ADNOC Gas has billions of dollars being invested into long-term growth even as geopolitical tensions and disruptions around the Strait of Hormuz continue to weigh on near-term earnings.