ADNOC L&S Achieves 18% Year-on-Year Net Profit Growth To AED 643 Million In Q3 2024

ADNOC Logistics and Services plc (ADNOC L&S) has reported its financial results for the third quarter and the first nine months of 2024. The company saw a 38% increase in revenue for the nine-month period, reaching $2,668 million (AED9,798 million), compared to the same period in 2023. EBITDA also rose by 37% to $867 million (AED3,184 million), maintaining a margin of 32%. Net profit climbed by 27% to $576 million (AED2,117 million), or $0.08 (AED0.29) per share.

The company's Q3 revenue increased by 32% year-on-year to $928 million (AED3,410 million). EBITDA for this quarter grew by 26% year-on-year to $275 million (AED1,011 million). Net profit for Q3 rose by 18% year-on-year to $175 million (AED643 million). This performance is attributed to ADNOC L&S's strategic focus on energy-related maritime logistics investments.

ADNOC L&S's Integrated Logistics segment saw revenues rise by 51% to $1,671 million (AED6,137 million) compared to the first nine months of 2023. This growth was driven by better utilisation of Jack-Up Barges and an expanded fleet. Additionally, higher logistics volumes and progress in Engineering, Procurement and Construction projects contributed significantly.

The Shipping segment experienced a revenue increase of 23%, reaching $745 million (AED2,737 million) over the same period in 2023. Strong charter rates for Tankers and Dry Bulk vessels were key factors. The acquisition of four new Very Large Crude Carriers in 2023 also added to this growth.

EBITDA for the Shipping segment rose by 32% to $316 million (AED1,159 million), leading to a three-percentage point increase in EBITDA margin to 42%. However, profits from Gas Carriers declined due to reduced spot charter-in operations and technical offhire days in Q1 2024.

The Services segment recorded a revenue increase of 20%, amounting to $252 million (AED924 million) compared to the first nine months of last year. This segment's EBITDA surged by 48% to $46 million (AED168 million), primarily due to higher volumes in petroleum port and onshore terminal operations.

Strategic Investments and Future Outlook

ADNOC L&S continues its growth strategy with the acquisition of Navig8 announced earlier this year. This acquisition is expected to enhance earnings per share by at least 20% within the first full year post-completion. Regulatory approvals are underway with completion anticipated by March 31, 2025.

The company has also bolstered its asset base through new contracts for energy-efficient vessels. Contracts worth up to $2.5 billion (AED9.2 billion) have been awarded for up to ten new Liquified Natural Gas Carriers. Additionally, AW Shipping secured contracts worth $1.4 billion (AED5 billion) for nine Very Large Ethane Carriers and approximately $500 million (AED1,836 million) for four Very Large Ammonia Carriers.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, stated: "These robust financial results demonstrate continued delivery of our strategy and our focus on delivering strong shareholder value through growth." He added that Navig8's contribution would further elevate their status as a global energy maritime logistics leader while their strong balance sheet supports further growth opportunities.

With inputs from WAM