ADNOC L&S Announces A Significant 31% Net Profit Increase In H1 2024

ADNOC Logistics and Services (ADNOC L&S) has released its financial results for the second quarter and first half of 2024. The company reported a net profit of $401 million (AED1,473 million) for H1 2024, translating to $0.05 (AED0.20) per share. This marks a 31% increase compared to H1 2023.

In the first half of 2024, ADNOC L&S achieved revenues of $1,740 million (AED6,390 million), reflecting a 42% rise from H1 2023. The company's EBITDA also saw a significant increase, reaching $591 million (AED2,170 million), up by 42%. This robust performance across all business segments helped maintain EBITDA margins at 34%.

The second quarter alone saw revenues climb by 42% year-on-year to $899 million (AED3,302 million). During this period, EBITDA grew by 40% year-on-year to $306 million (AED1,124 million). Net profit for Q2 rose by 28% year-on-year to $208 million (AED764 million).

The impressive financial growth is attributed to ADNOC L&S's ongoing transformational growth strategy. The company plans to invest over $5 billion (AED18.4 billion) in energy-related maritime logistics by the end of 2028. One year after its record-breaking IPO, ADNOC L&S has already committed over half of this strategic investment target.

Significant investments have been made against long-term contracted demand. Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, stated, "The sustained execution of our transformational growth strategy is driving our financial performance across all business segments with strong growth in revenues and net profit."

Segment Performance Highlights

Revenues from the Integrated Logistics segment surged to $1,132 million (AED4,157 million), up by 55% compared to H1 2023. The Shipping segment also performed well, with revenues increasing by 27% to $519 million (AED1,906 million).

The Marine Services segment saw a modest revenue increase of 1%, reaching $89 million (AED327 million) compared to H1 2023. However, this segment's EBITDA grew significantly by 64%, amounting to $29 million (AED107 million).

Future Outlook and Commitments

ADNOC L&S continues to expand its market-leading fleet through new energy-efficient vessel construction contracts and geographical expansion via the acquisition of Navig8. Captain Abdulkareem Al Masabi added, "To meet the growing demand for low-carbon energy sources in the UAE and beyond, we have continued to expand our market-leading fleet through significant new energy-efficient vessel construction contracts and geographical expansion through our acquisition of Navig8."

The company remains focused on targeting value-accretive investments to serve an increasing global customer base while delivering long-term value to shareholders.

This comprehensive approach ensures ADNOC L&S is well-positioned for sustained growth and profitability in the coming years.

With inputs from WAM