Adnoc Gas reported a nearly 8 per cent annual rise in net income for the third quarter, as its domestic gas business drove profit despite a slump in global hydrocarbon prices.

Net profit in the three months that ended in September rose to a record $1.34 billion, the unit of energy major Adnoc said in a regulatory filing to the Abu Dhabi Securities Exchange, where its shares trade.

The domestic gas business of the company delivered a 26 per cent year-on-year rise in earnings before interest tax, depreciation and amortisation (Ebitda) to $914 million.

The company attributed the “strength of the UAE economy” as the primary driver of a 4 per cent increase in domestic gas sales volumes in the January to September period.

Higher underlying margins following structural improvements from contract renegotiations, also boosted profitability.

“Our record Q3 results, and strong year-to-date performance are a testament to the resilience and adaptability of our business model,” said chief executive Fatema Al Nuaimi.

“Our profitability continues to grow, even while oil prices are down. Despite a lower oil price environment, we continue to deliver robust returns, underpinned by operational excellence and improved commercial agreements.”

Adnoc Gas, estimated to have the seventh largest natural gas reserves globally, supplies about 60 per cent of the UAE’s gas sales needs and supplies end-customers in more than 20 countries.

For the first nine months of the year, the company recorded a 10 per cent annual increase in net profit to $3.99 billion. The company's Ebitda and net income margin rose to 36.6 per cent and 22.2 per cent, respectively, between January and September, despite oil prices averaging $71 per barrel compared with $83 per barrel in the same period last year.

Fatema Al Nuaimi, chief executive of Adnoc Gas, at the Adipec conference. Bloomberg

Volatile oil prices

Oil prices have remained volatile this year amid the Gaza war, as well as the conflict between Russia and Ukr