Adnoc Gas says Habshan complex to be fully operational next year, as earnings strained in 1Q on Hormuz disruptions

Damage to the Habshan gas processing facility from Iranian attacks in April is expected to keep parts of the complex offline into 2027, with the site currently operating at around 60% capacity and Adnoc Gas targeting an 80% restoration rate by year-end, according to the gas firm’s management discussion and analysis report (pdf).

The company’s exports of LNG, LPG, and naptha were disrupted by the closure of the Strait of Hormuz in 1Q 2026, falling 20% y-o-y and weighing on earnings through March. Net income fell 15% y-o-y to USD 1.1 bn, according to its financials (pdf), and revenue declined 18% to USD 5 bn.

REMEMBER- Adnoc Gas was forced to “manage” LNG and liquids output as traffic through Hormuz — which carries roughly a fifth of global oil and gas — slowed sharply amid the conflict. Sale volumes for domestic gas saw a more muted drop of 11% y-o-y.

The fallout is expected to spill into 2Q: Adnoc Gas warned the strait’s closure could shave USD 400-600 mn off net income in the second quarter assuming maritime operations normalize before quarter-end. Even so, management still expects FY 2026 net income of USD 3.5-4 bn, helped by stronger LNG and LPG pricing in 2H if shipping routes reopen.

Full operational recovery could take a while: Once Hormuz reopens, shipments should resume “within a reasonable time frame,” though CFO Peter Van Driel told Bloomberg (watch, runtime: 07:44) “we simply don’t know.”

The company is also ramping up capex: Adnoc Gas raised its FY 2026 capex guidance by around USD 500 mn to USD 4.5-5 bn as regional disruption and supply chain pressures lift project costs. The board also approved a quarterly dividend of USD 941 mn, as part of its policy to grow annual dividends by 5% through 2030.

REMEMBER-A couple of Adnoc tankers have been getting through the Strait of Hormuz despite the closure, after switching off their signals. The company has managed to still “fulfill commitments” by “efficiently managing logistics, inventories, and supply chains to lessen the impact of ongoing export disruptions,” it said in the report.