{"id":64340,"date":"2026-07-06T23:08:16","date_gmt":"2026-07-07T03:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/samsung-profit-surges-19-fold-while-adnoc-secures-major-lng-deals-with-japan\/64340\/"},"modified":"2026-07-06T23:08:16","modified_gmt":"2026-07-07T03:08:16","slug":"samsung-profit-surges-19-fold-while-adnoc-secures-major-lng-deals-with-japan","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/samsung-profit-surges-19-fold-while-adnoc-secures-major-lng-deals-with-japan\/64340\/","title":{"rendered":"Samsung Profit Surges 19-Fold While ADNOC Secures Major LNG Deals with Japan"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>)<\/strong> reported a massive <strong>19-fold increase<\/strong> in Q2 operating profit to <strong>89.4 trillion won ($58.4 billion)<\/strong>, yet shares tumbled as much as <strong>8%<\/strong> on oversupply fears.<\/li>\n<li><strong>ADNOC<\/strong> secured a long-term agreement to supply <strong>1 million metric tonnes per annum (mmtpa)<\/strong> of LNG to Japan&#39;s <strong>INPEX (<a href=\"\/stock\/1605\">1605<\/a>)<\/strong> from the Ruwais project.<\/li>\n<li>Long-term commitments for the <strong>Ruwais LNG<\/strong> project have now surpassed <strong>90% of total capacity<\/strong>, with nearly <strong>23%<\/strong> of that volume dedicated to Japanese customers.<\/li>\n<li>The semiconductor market is showing signs of a &quot;speed adjustment&quot; as investors weigh record AI-driven profits against potential future gluts in conventional memory.<\/li>\n<\/ul>\n<h2>Samsung\u2019s Record Profit Met with Market Skepticism<\/h2>\n<p>Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>) posted a staggering preliminary operating profit of <strong>89.4 trillion won ($58.4 billion)<\/strong> for the second quarter of 2026, representing an <strong>1,810% jump<\/strong> from the previous year. This performance was driven by the ongoing AI boom, which has sent prices for High-Bandwidth Memory (HBM) and conventional DRAM soaring. Despite the record-breaking figures, the company\u2019s stock price fell sharply, closing down nearly <strong>8%<\/strong> as investors shifted focus toward potential oversupply in the broader memory sector.<\/p>\n<p>Analysts noted that while AI demand remains robust, worries are mounting that a rapid expansion in production capacity could lead to a surplus of conventional chips by 2027. <em>Market sentiment was further dampened by an earnings miss on the revenue side<\/em>, with the reported <strong>171 trillion won<\/strong> falling slightly short of some bullish analyst estimates. Additionally, a new wage deal requiring <strong>Samsung<\/strong> to set aside significant funds for employee bonuses impacted the final bottom-line perception for some institutional traders.<\/p>\n<h2>ADNOC Strengthens Energy Ties with Japan<\/h2>\n<p>The Abu Dhabi National Oil Company (<strong>ADNOC<\/strong>) continues its aggressive commercialization of the <strong>Ruwais LNG<\/strong> project, announcing a new 15-year Sales and Purchase Agreement with Japan\u2019s <strong>INPEX (<a href=\"\/stock\/1605\">1605<\/a>)<\/strong>. Under the deal, <strong>ADNOC<\/strong> will supply <strong>1 mmtpa<\/strong> of liquefied natural gas, further cementing the UAE&#39;s role as a critical energy partner for Japan. This agreement follows a series of similar deals with other Japanese utilities, including <strong>Osaka Gas<\/strong> and <strong>Mitsui &amp; Co.<\/strong><\/p>\n<p>With the <strong>INPEX<\/strong> contract, <strong>ADNOC<\/strong> confirmed that more than <strong>90%<\/strong> of the Ruwais project&#39;s <strong>9.6 mmtpa<\/strong> total capacity is now committed under long-term agreements. Notably, nearly <strong>23%<\/strong> of the project&#39;s output is now earmarked for Japanese buyers, highlighting Japan&#39;s strategic move to secure stable energy supplies amid global transition efforts. The Ruwais facility, which is designed to be one of the world&#39;s lowest-carbon-intensive LNG plants, is on track to begin commercial operations in <strong>2028<\/strong>.<\/p>\n<h2>Diverging Paths in Global Markets<\/h2>\n<p>The contrasting news from the tech and energy sectors highlights a broader market trend where &quot;old energy&quot; remains a bastion of long-term stability while &quot;new tech&quot; faces extreme volatility. While <strong>ADNOC<\/strong> is successfully locking in decade-long commitments for its gas assets, <strong>Samsung<\/strong> is navigating a hyper-cyclical semiconductor environment where even record profits cannot fully insulate a stock from future supply-demand anxieties.<\/p>\n<p><em>Investors are increasingly looking for &quot;proof of sustainability&quot; in AI-related growth<\/em>, as evidenced by the sharp sell-off in South Korean chip stocks following the <strong>Samsung<\/strong> announcement. Meanwhile, the energy sector&#39;s focus on long-term Sales and Purchase Agreements (SPAs) provides a predictable revenue roadmap that stands in stark contrast to the rapid price fluctuations currently seen in the global memory chip market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Samsung Electronics (005930) reported a massive 19-fold increase in Q2 operating profit to 89.4 trillion won ($58.4 billion), [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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