MENA Newswire News Desk: ADNOC Logistics and Services plc (ADNOC L&S) has reported an 18% year-on-year increase in net profit for the third quarter of 2024, achieving AED643 million. This financial growth aligns with ADNOC L&S’s broader success throughout the first nine months (9M) of 2024, marked by a 38% revenue increase to AED9,798 million ($2,668 million) compared to the same period in 2023. The company’s EBITDA for 9M rose by 37% to AED3,184 million ($867 million), maintaining a 32% EBITDA margin, a sign of steady operational performance across all business segments.
For the third quarter alone, ADNOC L&S’s revenue rose by 32% year-on-year to AED3,410 million ($928 million), with a 26% increase in EBITDA to AED1,011 million ($275 million). CEO Captain Abdulkareem Al Masabi attributed these results to ADNOC L&S’s growth-focused strategy, emphasizing investments in energy-related maritime logistics and a commitment to shareholder value. Al Masabi noted that the anticipated contribution of Navig8, a recent acquisition, is expected to bolster ADNOC L&S’s standing in the global maritime logistics sector.
A significant portion of the company’s revenue growth stems from its Integrated Logistics segment, which increased 51% year-on-year to AED6,137 million ($1,671 million). This segment’s performance was boosted by expanded fleet utilization, higher logistics volumes, and progress on key projects, including accelerated development in the Hail & Ghasha project and the G-Island project, which is anticipated to reach 70-75% completion by year-end. The Integrated Logistics segment’s EBITDA grew by 38% to AED1,856 million ($505 million) compared to 9M 2023.
ADNOC L&S’s Shipping segment also demonstrated strong performance, reporting a 23% revenue increase to AED2,737 million ($745 million) for the nine-month period. This growth was driven by higher charter rates for tankers and dry bulk carriers and contributions from four newly acquired Very Large Crude Carriers (VLCCs). However, there was a slight offset due to reduced profits from gas carriers, impacted by the cessation of spot charter-in operations and technical offhire days in Q1 2024. Shipping segment EBITDA rose by 32% to AED1,159 million ($316 million), expanding the EBITDA margin by three percentage points to 42%.
Additionally, ADNOC L&S’s Services segment saw a 20% revenue increase year-on-year to AED924 million ($252 million) for 9M 2024, with EBITDA growing by 48% to AED168 million ($46 million). The primary growth drivers for this segment were increased volumes in petroleum port and onshore terminal operations.
Strategic initiatives have played a crucial role in ADNOC L&S’s ongoing expansion. In the first half of 2024, the company announced the acquisition of Navig8, a transaction expected to be value-accretive and projected to raise ADNOC L&S’s earnings per share by at least 20% in the first full year post-acquisition. The acquisition awaits final regulatory approvals, with completion anticipated by 31 March 2025.
In addition to its acquisition strategy, ADNOC L&S has strengthened its asset base through new contracts aimed at enhancing fleet efficiency and capacity. Contracts amounting to $2.5 billion (AED9.2 billion) were awarded for up to 10 new LNG carriers, alongside deals through AW Shipping totaling $1.4 billion (AED5 billion) for nine Very Large Ethane Carriers (VLECs) and approximately $500 million (AED1.8 billion) for four Very Large Ammonia Carriers (VLACs). These developments underscore ADNOC L&S’s commitment to its growth strategy and reinforce its position within the global energy logistics sector, demonstrating resilience and strong financial health in a dynamic market.