ADNOC L&S Q3 net profit up 18% YoY to AED643 million

ADNOC Logistics and Services plc (ADNOC L&S) today announced its third quarter and first nine months (9M) 2024 financial results.

The revenue for the nine months 2024 was $2,668 million (AED9,798 million), up 38% compared to 9M 2023. EBITDA rose by 37% to $867 million (AED3,184 million) in the same period driven by robust performance across all business segments, sustaining EBITDA margins at 32%. Net profit for 9M 2024 was $576 million (AED2,117 million), equating to $0.08 (AED0.29) per share, an increase of 27% comparing to 9M 2023.

The Company’s Q3 revenue increased by 32% year-on-year (y-o-y) to $928 million (AED3,410 million) with EBITDA up by 26% y-o-y to $275 million (AED1,011 million).

Net profit for Q3 grew 18% y-o-y to $175 million (AED643 million). This strong financial performance is a result of the continuous execution of ADNOC L&S’ transformative growth strategy, focused on value-accretive investments in energy-related maritime logistics.

After just 18 months after of its record-setting IPO, ADNOC L&S has already delivered commitments to the majority of its strategic investment goal, backed by over 340 years of incremental long-term contracted demand.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “These robust financial results demonstrate continued delivery of our strategy and our focus on delivering strong shareholder value through growth. The expected contribution of Navig8 will further boost our profile as a global energy maritime logistics company, while our strong balance sheet provides for further organic and inorganic value-accretive growth opportunities.”

Revenues from ADNOC L&S’ Integrated Logistics segment increased to $1,671 million (AED6,137 million), up 51% on 9M 2023. This growth was driven by the improved utilization of Jack-Up Barges (JUBs) coupled with the expanded fleet; higher logistics volumes; accelerated Hail & Ghasha project delivery; and Engineering, Procurement and Construction (EPC) project progress, in particular the contribution of the G-Island project (expected to be 70-75% complete by year-end). Integrated Logistics EBITDA rose by 38% to $505 million (AED1,856 million) for the first nine months of 2024 against the comparable period in 2023.

Revenues from the Shipping segment increased 23% to $745 million (AED2,737 million) on 9M 2023, driven by strong charter rates for Tankers and Dry Bulk, coupled with additional revenue from the four new Very Large Crude Carriers (VLCCs) acquired in 2023. This was slightly offset by a reduction in profits from Gas Carriers due to cessation of spot charter-in operations and technical offhire days in Q1 2024.

Shipping EBITDA increased 32% to $316 million (AED1,159 million) from 9M 2023, contributing to a three-percentage point expansion in EBITDA margin to 42%.

Revenues from the Services segment increased 20% to $252 million (AED924 million) compared to 9M 2023. This segment generated an EBITDA of $46 million (AED168 million), up 48%, mainly powered by increased volumes in petroleum port and onshore terminal operations.

ADNOC L&S continues to deliver on its growth strategy. The Navig8 acquisition, announced during the first half of 2024, will accelerate the Company’s growth strategy. The transaction, which will be immediately value accretive, is projected to boost ADNOC L&S’s earnings per share by at least 20% in the first full year. Regulatory approvals required to complete the deal are in process with anticipated completion remaining 31 March 2025 at the latest.

During the year, the Company also strengthened its asset base with new build contracts for additional energy-efficient vessels. The Company awarded contracts of up to $2.5 billion (AED9.2 billion) for up to 10 new Liquified Natural Gas (LNG) Carriers, and through AW Shipping $1.4 billion (AED5 billion) for nine Very Large Ethane Carriers (VLECs) and approximately $500 million (AED1,836 million) for four Very Large Ammonia Carriers (VLACs).